New Delhi : In one more consolidation exercise, the $41 billion Aditya Birla cluster plans to merge cluster corporations Aditya Birla Nuvo Ltd and Grasim, and hive off money services business into a separate entity, which is able to be listed later.
The boards of Aditya Birla Nuvo Ltd (ABNL) and Grasim Industries these days approved a composite theme of arrangement between the 2 corporations and Aditya Birla money Services Ltd (ABFSL), a wholly-owned arm of ABNL.
As per the theme, ABNL can merge with Grasim and once the merger, the money services business of the combined entity are hived off and unified with ABFSL, whose shares can consequently be listed.
In a mad cow disease filing, ABNL same the move is "aimed at making one in every of India's largest and well-diversified corporations with a mixture of money generating and high growth businesses."
The theme are subject to requisite approvals from shareholders, creditors, High Courts and regulative authorities, ABNL and Grasim same in separate regulative filings.
ABNL has interest in money services (Aditya Birla money Services), medium (Idea Cellular), textiles and fertilisers, along side new ventures appreciate payment banks and alternative energy through varied entities.
Grasim on the opposite hand has presence in cement, chemicals and viscose staple fibre businesses. In 2015-16, ABNL had announce revenue of Rs five,466.45 large integer with a earnings of Rs 360.02 crore, whereas Grasim Industries revenue was at Rs eight,979.60 large integer with a earnings of Rs 953.27 crore.
Last year, the Aditya Birla cluster had consolidated its attire businesses into then Rs five,290 large integer entity named Aditya Birla Fashion and Retail (ABFRL).
Under the theme, the attire businesses of cluster company Aditya Birla Nuvo (ABNL) and of another cluster firm Madura clothes fashion Retail Company Ltd (MGLRCL) were demerged into listed firm Pantaloons Fashion & Retail Ltd (PFRL), that has currently been renamed as Aditya Birla Fashion and Retail.