Aditya Birla Nuvo sinks 25% to become the biggest loser on BSE
As part of the plan, financial services business of the merged entity will be hived off and merged with Aditya Birla Financial Services (ABFSL), a wholly-owned arm of ABNL and will be listed subsequently.
- Aug 12, 2016,
- Updated Aug 12, 2016 5:52 PM IST
The shares of Aditya Birla Nuvo plunged 24.63 per cent touching a low of Rs 1,180 on the BSE.
This comes in the backdrop of the company annoucing its merger with Grasim Industries Ltd.
Grasim stocks fell more than 8 per cent to a low of Rs 4,160 on the BSE.
Both the stocks saw their biggest single-day fall in eight years.
The Aditya Birla Nuvo stock closed 17.60 per cent lower at Rs 1290.15 on the BSE.
The Grasim stock, too, recovered to close 0.57 per cent higher Rs 4,565.
The merger is scheduled to be completed by the first quarter of next fiscal, while the financial services business will be listed by June 2017.
As part of the plan, financial services business of the merged entity will be hived off and merged with Aditya Birla Financial Services (ABFSL), a wholly owned arm of ABNL and will be listed subsequently.
The boards of Aditya Birla Nuvo Ltd (ABNL) and Grasim Industries approved a composite scheme of arrangement between the two firms and ABFSL.
"The proposed restructuring will create one of India's largest, well-diversified companies with a healthy mix of business with steady cash flows and long term growth opportunities," Aditya Birla Group Chairman Kumar Mangalam Birla said on Thursday.
With diverse businesses spanning manufacturing and services, the combined company provides a play on India's growth story, he added.
Post merger, with an aggregate turnover of Rs 59,766 crore (for the year ended March 31, 2016), Grasim will become the number one cement company with the largest selling brand, among the top 10 diversified private NBFCs in India, top four private sector life insurers and asset management companies and number three telecom operator in the country, the Aditya Birla Group had said in a statement.
(With inputs from PTI)
The shares of Aditya Birla Nuvo plunged 24.63 per cent touching a low of Rs 1,180 on the BSE.
This comes in the backdrop of the company annoucing its merger with Grasim Industries Ltd.
Grasim stocks fell more than 8 per cent to a low of Rs 4,160 on the BSE.
Both the stocks saw their biggest single-day fall in eight years.
The Aditya Birla Nuvo stock closed 17.60 per cent lower at Rs 1290.15 on the BSE.
The Grasim stock, too, recovered to close 0.57 per cent higher Rs 4,565.
The merger is scheduled to be completed by the first quarter of next fiscal, while the financial services business will be listed by June 2017.
As part of the plan, financial services business of the merged entity will be hived off and merged with Aditya Birla Financial Services (ABFSL), a wholly owned arm of ABNL and will be listed subsequently.
The boards of Aditya Birla Nuvo Ltd (ABNL) and Grasim Industries approved a composite scheme of arrangement between the two firms and ABFSL.
"The proposed restructuring will create one of India's largest, well-diversified companies with a healthy mix of business with steady cash flows and long term growth opportunities," Aditya Birla Group Chairman Kumar Mangalam Birla said on Thursday.
With diverse businesses spanning manufacturing and services, the combined company provides a play on India's growth story, he added.
Post merger, with an aggregate turnover of Rs 59,766 crore (for the year ended March 31, 2016), Grasim will become the number one cement company with the largest selling brand, among the top 10 diversified private NBFCs in India, top four private sector life insurers and asset management companies and number three telecom operator in the country, the Aditya Birla Group had said in a statement.
(With inputs from PTI)