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Grasim Industries has completed the merger of the group company Aditya Birla Chemicals (India) (ABCIL) with itself on Monday.
Grasim will issue 14.62 lakh equity fresh shares to shareholders of Aditya Birla Chemicals, who will receive one share of Grasim for 16 shares of ABCIL they hold. The share capital of Grasim will increase from ₹91.88 crore to ₹93.34 crore.
Last February, the board of directors of both companies approved the decision to merge ABCIL with Grasim and fixed April 1, 2015, as the appointed date.
With the merger becoming effective, Grasim’s standalone earnings before interest, tax, depreciation and amortisation for the first half of fiscal increased to ₹883 crore, from ₹728 crore announced earlier. The installed caustic soda capacity nearly doubles to 804,000 tonnes per annum from 453,000 tonnes per annum.
Grasim is the largest chlor-alkali manufacturer and the merger will further consolidate its leadership, said the company in a statement. The installed capacity of caustic soda will move up to 804,000 tonnes per annum from 453,000 tpa.
The merger has resulted in geographical diversification of the chlor-alkali business and enables to capitalise growth opportunities backed by Grasim, it said.
As of September quarter, Grasim consolidated net debt including 60 per cent stake it owns in Ultratech Cement was at ₹5,893 crore and it reported net surplus of ₹310 crore on a standalone basis. ABCIL debt was at ₹2,123 crore as of September quarter.
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