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| Grasim to demerge cement business |
| Press Trust of India / New Delhi Oct 03, 2009, 17:03 IST |
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Aditya Birla Group firm Grasim Industries today said it will demerge its cement business into another group company, Samruddhi, as part of a restructuring plan.
"Under the scheme (of restructuring), Grasim will transfer its cement business, including related business/ investments but excluding its investment in UltraTech, to Samruddhi," Grasim Industries said in a communique to the Bombay Stock Exchange.
As part of the restructuring exercise, Samruddhi would issue one equity share of Rs 5 each to Grasim shareholders for every share they hold in Grasim.
On completion of the demerger, Samruddhi would be listed on the bourses, it added.
"The restructuring move announced today is designed to ensure Grasim's majority stake in, and continued support to, the rapidly growing cement business while simultaneously providing Grasim shareholders direct participation in the pure play cement company," Aditya Birla Group Chairman Kumar Mangalam Birla said.
On completion of the demerger, Grasim shareholders would directly hold 35 per cent of Samruddhi, and Grasim's stake would be diluted to 65 per cent, the statement said.
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