"However, we would have preferred a vertical split of the financial services business from Aditya Birla Nuvo. In addition, AB Nuvo shareholders will not get the full benefit of the value unlocking that will occur once the financial services business is listed on the bourses. "The merged entity will hold 57 per cent stake in financial services business that will be de-merged from AB Nuvo. Aditya Birla Nuvo has surged 76 per cent to Rs 1,565 in the past three months. ET Intelligence Group: The merger of Aditya Birla Nuvo into Grasim and then separately carving out the financial services business into a new entity is not favourable for shareholders of either company.For Grasim shareholders, the new entity will have a complex structure with higher debt and relatively lower stock valuation due to the conglomerate structure.

Source: Economic Times August 11, 2016 19:41 UTC