Aditya Birla Chemicals climbs on merger with Grasim Inds

Grasim Industries approved the merger of ABCIL with itself and approved the swap ratio at 1 share of Grasim for every 16 shares of ABCIL

Shares of Aditya Birla Chemicals have surged 4% to Rs 233 on the BSE after the board of Grasim Industries approved the proposed merger of Aditya Birla Chemicals India (ABCIL) with itself and approved the swap ratio at 1 share of Grasim for every 16 shares of ABCIL.

In a statement, Grasim said it will issue 14.62 lakh new shares, which will increase its share capital to Rs 93.31 crore.

The proposed merger will consolidate Aditya Birla Group’s chlor-alkali business into Grasim and strengthen its existing portfolio of viscose staple fibre, caustic soda and allied chemicals in standalone company, the company said.

The merger will enable the geographical diversification for Grasim through the addition of ABCIL’s manufacturing facilities spread across the country.

It will also enable the business to capitalize growth opportunities by bringing in operational and financial synergies, backed by Grasim’s strength. The consolidation is in line with Aditya Birla Group’s philosophy to unify similar business in one company, the company said in a statement. 

The stock opened at Rs 235, touched a high of Rs 234 and a low of Rs 231 on the BSE. A total of 71,845 changed hands on the BSE till 10AM.

Meanwhile, Shares of Grasim are trading nearly half a percent high at Rs 3,837 on the BSE.