Each shareholder of Aditya Birla Nuvo Ltd will get three new equity shares in Grasim for every 10 equity shares held in Aditya Birla Nuvo. The boards of Aditya Birla Nuvo on Thursday approved a so-called composite scheme of arrangement between the company, its wholly owned arm Aditya Birla Finnacial Services Ltd and Grasim Industries Ltd.“Aimed at creating on of the India’s largest and well diversified companies with a combination of cash generating and high growth business the scheme provides for merger of Aditya Birla Nuvo with Grasim Industries and post said merger, demerger of financial services business from amalgamated Grasim Industries and Aditya Birla Financial Services and consequent listing of equity shares of Aditya Birla Financial Services,” Aditya Birla Nuvo said in a statement. In aggregate, each shareholder of Aditya Birla Nuvo holding 100 shares will receive 30 shares in Grasim and 210 shares in Aditya Birla Financial Services. Aditya Birla Nuvo will cease to exist as an entity after the merger. As of March 2016, the consolidated debt of Grasim Industries was Rs.9732.48 crore and Aditya Birla Nuvo was at Rs.33,959.18 crore.

Source: Mint August 11, 2016 12:11 UTC