Grasim Industries gains after announcing completion of merger of Aditya Birla Chemicals (India)

Grasim Industries rose 0.75% to Rs 3,685.50 at 09:20 IST on BSE after the company announced that Aditya Birla Chemicals (India) has been merged with company.

Grasim Industries made the announcement after market hours yesterday, 4 January 2016. Shares of Aditya Birla Chemicals (India) rose 1.12% to Rs 234.50.

Meanwhile, the S&P BSE Sensex was up 105.86 points or 0.41% at 25,729.21

On BSE, so far 100 shares of Grasim Industries were traded in the counter as against average daily volume of 2,830 shares in the past one quarter. The stock hit a high of Rs 3,689.70 and low of Rs 3,670.35 so far during the day. The stock had hit a 52-week high of Rs 4,023.60 on 3 March 2015. The stock had hit a 52-week low of Rs 3,304 on 29 June 2015.

The large-cap company has equity capital of Rs 91.87 crore. Face value per share is Rs 10.

Grasim Industries (Grasim) announced that Aditya Birla Chemicals (India) (ABCIL) has been merged with company from the appointed date of 1 April 2015 with all the requisite approvals for the scheme of amalgamation in place. With the merger becoming effective, Grasim's standalone EBITDA (earnings before interest, taxation, depreciation and amortization) for the six months ended 30 September 2015 stands increased from Rs 728 crore (pre-merger) to about Rs 883 crore (post-merger). Grasim will issue 14.62 lakh equity shares to the eligible shareholders of ABCIL in the ratio of one equity share of Rs 10 each of Grasim for every sixteen shares of Rs 10 each of ABCIL. This merger has resulted in the geographical diversification of the chlor-alkali business of Grasim, the company said. It also enables the business to capitalize growth opportunities backed by Grasim's inherent strengths, the company added.

Grasim Industries' consolidated net profit rose 17.3% to Rs 488.50 crore on 5.4% growth in total income to Rs 8479.93 crore in Q2 September 2015 over Q2 September 2014.

Grasim Industries' two main businesses are Viscose Staple Fibre (VSF) and cement.

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