Grasim to demerge. Shareholders to get direct stake in new company.

Grasim has informed that in order to create a "pure play" cement company, it will hive off its cement business to another entity.

Cement business accounts for around 70% of Grasim's revenues.

The shareholders of Grasim will get 1 share of the new entity, ie Samruddhi Cement for every share of Grasim they hold. The existing shares of Grasim will continue to remain as well. Finally, in the new entity, Grasim will hold 65% stake, while the shareholders will hold a direct 35% in the company. After the procedure, Samruddhi Cement would be listed.

Finally, a merger of Samruddhi and Ultratech is planned.

Grasim will continue to do its other businesses, viz VSF. It has announced a Rs. 1000 cr investment in Gujarat for a VSF plant that will commence production in FY13.

Kumar Mangalam Birla said: "This is this is part of Grasim's continuing efforts ot improve shareholder value... the demerger opens up new opportunities for financing cement growth.."

How the markets react to this would be interesting to see on Monday.

Read the official announcement here.

This looks good!
Uploaded at 10/03/2009 02:55:00 PM
by Chinmay
Tags: , , , , , , , ,

2 comments:

  1. ChinmayOctober 3, 2009 at 4:11 PM

    Grasim => Grasim + Samruddhi

    [Samruddhi + Ultratech]

    So,

    Grasim => Ultratech + Grasim.

    And so, shareholders of grasim will get additional shares of samruddhi/ultratech for free, while they will continue to hold in the new entity indirectly.

    ReplyDelete
  2. ChinmayOctober 3, 2009 at 4:12 PM

    Samruddhi is a wholly owned subsidiary of Grasim.
    ent: Grasim Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 03, 2009, has considered and approved a proposal to demerge the cement business of the Company into Samruddhi Cement Ltd. ("Samruddhi") in terms of a Scheme of Arrangement under Sections 391 - 394 of the Companies Act, 1956 (the "Scheme"). Samruddhi is presently a wholly owned subsidiary of the Company.

    ReplyDelete

Subscribe to: Post Comments (Atom)

Center Cloud

abg shipyard adani power Adlabs Agri ambani Analysis article Asian Electronics Austral coke Auto Bad Result Bajaj Auto balrampur chini Bank of Maharashtra banks BASF bearings Bharati Bharati Shipyard bharti airtel Biocon birla bnp paribas bonus issue BPL BSE bse announcement bull or bear cbi CEAT cement change chemicals chennai petro Cheviot clariant CNG commodities consolidated q2 contrarian convertible warrants correction Crew BOS crude oil d b corp debt free Deep Ind demerger Dhanuka Dhanuka Group DII disclosure discussion dollar dubai dubai world dutch Dutch company Eastern Silk Industries Economy egm Electronics eps equity european markets exclusive fashion fccb fii dii activity fluctuations food processing fpo franchisee Fuel marketing fund raising fundamental analysis gap Gateway Distriparks ge shipping general markets glenmark global markets Globus Spirits gold goldman sachs Good Fundamental Stock good result Granules India grasim great offshore GTL gtl infra gujarat nre coke hero honda High Growth Potential Stock Himadri Chemicals Hitachi hsbc HSIL idea cellular india indiabulls indiabulls power Indian Company indian hotels Indraprastha Gas Ltd inflated stock inflation informal infosys infrastructure inr insitutional investor intraday Investment IPO IPO allotment ipo follow up ipo index IPO information IT ivrcl jaiprakash associates jindal cotex Jindal Saw jsw jsw energy Kaashyap kesoram knowledge Koutons Lakshmi Machine Works land acquisition large debt leather lic listing LMW lnt long term lupin Mahindra Major Upmove mallya maruti suzuki mcnally bharat media Merck merger merger possibility merger ratio message MNC Monsanto mrpl multi bagger MUSCO nakoda news newspaper neyvelli NHPC nifty nirma NSE offline offshore OIL Oil India Ltd open offer Opinion Opto Circuits order order cancellation parekh aluminex pe ratio penny pfizer pharma Pipavav Shipyard piramal healthcare portfolio suggestion power Press Release Private Placement PSU Punj Lloyd q2 QIP rajesh exports raju rakesh jhunjhunwala Rallis Ranbaxy rbi RCF rec recommendations refineries rei agro reliance reliance comm renewable energy REPower request restructuring results results impact Retail Rights issue RIL RnD rnrl rolta RPG rupee safe sale of shares by promoter samruddhi samruddhi cements Sanitaryware major satyam scam Seamec Seeds Sensex service shareholding shares shipbuilding company shipping short term short term surge siemens SKF Slow Down sms social investing Solvay Spanco speculation sports Stake increase Stake increase by parent company stake sell Steel stock market Stockezy stocks stocks center subsidiary sugar Supreme Industries Suzlon Swedish Company Swine Flu swiss take over Tata tata motors tata steel TCS Technocraft Industries telecom textile textile machinery major timings change tip trading transport Turn Around TV18 tyre manufacturer UCO Bank Ugine Ultratech underperformer Update usd user interactive volatility Voltas watch list Weekly analysis world wyeth xl energy
Disclaimer:

Use of this site indicates your acceptance of our disclaimer.

Disclaimer : Any action you decide to take in the markets is your responsibility. http://stockscenter.blogspot.com/ will not be liable for any direct or indirect, consequential or incidental damages or loss arising out of the use of the information provided on this blog. This information is neither an offer to sell nor a solicitation to buy any of the securities mentioned here in this blog. Readers are expected to form their own judgement.

The author may or may not be trading in these securities.http://stockscenter.blogspot.com/ provides free Indian stock market tips and opinion.

Please consult with a registered financial advisor before making any decisions on your investment.

Copyright © 2011 StocksCenter.blogspot.com "All Rights Reserved "

(this stuff is mine)

Privacy Policy:

We use third-party advertising companies to serve ads when you visit our website. These companies may use information (not including your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here.