Post the merger, they spun off the financial services business, including the mutual fund, NBFC, life insurance and payments bank under Aditya Birla Capital. In its letter to the stock … First, ABNL will be merged into Grasim; that will be followed by the demerger of the financial services business. The aim of AB Nuvo-Grasim merger is not to fund Idea Cellular for battle with RJio: KM Birla 13 Aug, 2016, 10.46 AM IST "The key leverage from the merger will be for its financial services business that can avail of a strong balance sheet of a large, diversified group that is banking on India’s growth." Aditya Birla Nuvo Limited (Nuvo) is a conglomerate operating in the service and manufacturing sectors. ABNL has interests in Aditya Birla Financial Services … (Bloomberg) -- Shareholders of Aditya Birla Nuvo Ltd., controlled by billionaire Kumar Mangalam Birla, approved plans for a merger with Grasim Industries Ltd. that would create a firm with $9 billion in combined revenue. The demerger and listing of the financial services business will unlock value for shareholders,” Birla said. Tulsian said. The company said post market … | Updated on January 11, 2018 Published on July 17, 2017 Shares of Grasim Industries and Aditya Birla Nuvo will remain in focus ahead of the merger. It will be the third-ranked telecom operator besides being among the top four private sector life insurance and asset management companies in India. Demonstrate that you have researched the problems in this The Grasim Industries–Aditya Birla Nuvo Limited Merger Wealth Creation case study. Aditya Birla Management Corporation Private Limited, “The proposed restructuring will c;reate one of India’s largest, well-diversified companies with a healthy mix of businesses with steady cash flows and long-term growth opportunities. The Grasim Industries–Aditya Birla Nuvo Limited Merger Wealth Creation Case Solution Background Set the scene background information, relevant facts, and the most important issues. The transaction which is subject to regulatory approvals would be implemented in two phases. The exchange ratio would be adjusted accordingly to take into account the effect of the sub-division. On August 11, 2016, the chairman of Aditya Birla Group (ABG) announced that ABG would merge Aditya Birla Nuvo … “The Grasim stock had taken a beating because the structure of the deal that got reported was baseless. Grasim-Aditya Birla Nuvo merger ''on track'' 01 November, 2016 | BusinessLine. Share. NEW DELHI: Pantaloons Fashion & Retail Ltd today said it has fixed January 21 as the Record Date for determining the entitlement of the equity shareholders of Aditya Birla Nuvo Ltd upon merger of Aditya Birla Group's apparel businesses. The board of directors of Grasim Industries Ltd, ABNL and Aditya Birla Financial Services Ltd (ANFSL) at their respective meetings approved the merger of ABNL into Grasim and subsequent demerger and listing of the financial services business through a composite scheme of arrangement. In other words, a shareholder having 100 Grasim shares will receive 700 ABFSL shares. Aditya Birla Nuvo Ltd (ABNL) will merge with Grasim Industries Ltd in a bid to unlock shareholder value and c;reate a $9 billion (Rs 59,766 crore) enterprise. Grasim has a cash surplus of Rs.500 crore, while Aditya Birla Nuvo has net debt of Rs.2,500 crore. The transaction is expected to be completed by the fourth quarter of this year or in the first quarter of the next financial year. Swap ratio
“With diverse businesses spanning manufacturing and services, the combined company provides a play on India’s growth story. First, ABNL would merge into Grasim and thereafter the financial services business would be demerged resulting in a listed financial services company with 57 per cent owned by post-merger Grasim and the balance being held by post-merger Grasim shareholders on a proportionate basis. Dispelling investors’ concern about Idea Cellular using Grasim Industries’ reserves to take on growing competition from soon-to-be-launched RJio, Birla said Idea is a separate listed entity and is capable of raising funds on its own. Under this plan, the financial services business will be demerged into a newly formed company — Aditya Birla Financial Services Ltd (ABFSL), which will be listed separately. Under the existing structure, the promoter holds 31.3 per cent in Grasim and 58.4 per cent in Aditya Birla Nuvo. The current restructuring of group holdings has nothing to do with Idea whatsoever, he said. In May last year, Aditya Birla Nuvo announced merger of all its branded apparel businesses into one entity, Pantaloons Fashion & Retail now known as Aditya Birla Fashion and Retail. We have chalked down the ten important things you must know about deal. With the merger, the Aditya Birla Group decided to hive off its financial services business into a … Grasim will again be seen as the holding company for financial services and hence will trade at holding company’s discount. The company has gone out of the way to explain the proposal to Investors even as there are … The promoter group will hold 39 per cent in the merged entity and the balance will be with the public. Q4 target
“In aggregate each shareholder of ABNL holding 100 shares will receive 30 shares in Grasim and 210 shares in ABFSL,” according to statement from the Aditya Birla Group. The restructuring involves two steps namely merger of Aditya Birla Nuvo with Grasim Industries and demerger of its financial services business resulting in a listed financial services company with 57% owned by post-merger Grasim Industries and the remaining shares held by post-merger Grasim Industries shareholders on a proportionate basis. Win-win situation
Mumbai: The Aditya Birla Group is merging two of its main companies, Aditya Birla Nuvo Ltd (Nuvo) and Grasim Industries Ltd, both of which also … “With diverse businesses spanning manufacturing and services, the combined company provides a play on India’s growth story. Aiming to create a strong presence in the financial services category, the $41 billion Aditya Birla Group on Thursday announced a mega restructuring plan by merging group firms Aditya Birla Nuvo Ltd and Grasim. Product Number: 9B20N003. “The merger will unlock value for shareholders,” said Kumar Managalam Birla, Chairman of the Aditya Birla Group. Back in 2017, NCLT Ahmedabad approved the merger of Aditya Birla Nuvo and Grasim Industries. Financial services business to be demerged into a new company; will unlock value for shareholders: Kumar Mangalam Birla. NEW DELHI: Shares of Grasim Industries and Aditya Birla Nuvo advanced up to 2 per cent each after the former announced the number of shares it will allot to shareholders of the latter on merger of the two. Kumar Mangalam Birla, chairman of Aditya Birla Group, on Thursday announced the merger of Aditya Birla Nuvo (ABNL) with Grasim Industries to create an entity with Rs 60,000-crore annual revenue or about $9 billion. two each. Mumbai: Grasim Industries has bounced back well from the controversial proposal to merge the Group company Aditya Birla Nuvo Limited with Itself and subsequent spin off of financial services. The Aditya Birla Group is in the League of Fortune 500. The Board also … Dilip Gaur, Managing Director of Grasim, said the merger provides Grasim shareholders with exposure to fast-growing sectors, including telecom and financial services. “The proposed restructuring will c;reate one of India’s largest, well-diversified companies with a healthy mix of businesses with steady cash flows and long-term growth opportunities. That the deal is done to fund Idea is not correct and it''s like jumping the gun.” He said there will be no exposure to Idea''s debt for the new merged entity. The merger will also consolidate the cross-holding within the group as both companies own stakes in Idea Cellular, Aditya Birla Fashion and Retail and Hindalco Industries. With the merger, the Aditya Birla Group decided to hive off its financial services business into a separate entity, which will be listed later. Its service sector businesses include Financial Services (Life Insurance, Asset Management, NBFC, Housing Finance, Private Equity, Broking, Wealth Management, online money management and general insurance advisory) and Telecom through investments in Idea … The Financials. The board of Grasim has also recommended sub-division of its equity shares of Rs.10 each into five equity shares of Rs. The Aditya Birla Group on Thursday announced a plan to merge Aditya Birla Nuvo Ltd (ABNL) with Grasim Industries to c;reate an entity with combined revenue of Rs.60,000 crore. The merged entity will be used to raise funds for debt-laden Idea Cellular to bid for upcoming spectrum auctions.”, Mr. Sandeep Gurumurthi Group Head, Communication & Brand
Barnali Chaklader, Garima Chaklader. The Aditya Birla group says the merger - if at all - will not impact the new Grasim as its holding in the merged entity will be proportionate to the current holding. Post-merger, Grasim, with an aggregate turnover of Rs.59,766 crore and EBITDA of Rs.11,961 crore for the year ended March 31, 2016, will become India’s top cement company and will be amongst the top 10 diversified private NBFCs in India. Publication Date: 02/07/2020. Aditya Birla Financial Services Ltd (currently under Nuvo) contributes significantly to the revenues of ABNL. The board of Grasim has also recommended sub-division of its equity shares of Rs.10 each into five equity shares of Rs.2 each. The merged entity had a revenue of Rs 59,760 crore, an operating profit of Rs … The company's businesses have grown into global powerhouses in a wide range of sectors – metals, … When the deal was first announced, there was a lot of trepidation and concern in the market regarding the rationale behind the deal and regarding the debt transfer. The balance 1 per cent will come from solar and insulator businesses. In addition, he said, Grasim investors would get exposure to a pure-play financial services business that has huge growth potential as the economy grows. The Aditya Birla Group on Thursday announced a plan to merge Aditya Birla Nuvo Ltd (ABNL) with Grasim Industries to create an entity with combined revenue of ₹60,000 crore. The transaction will be completed by the end of the current fiscal; the financial services arm will be listed next year. Aditya Birla Nuvo Ltd (ABNL) will merge with Grasim Industries Ltd in a bid to unlock shareholder value and c;reate a $9 billion (Rs 59,766 crore) enterprise. Aditya Birla Nuvo and Grasim Industries merger has been given a thumbs down by analysts who have called it a ‘dampener’. Promoter holding
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