Kumara Mangalam Birla led Aditya Birla Chemicals (ABCIL) and a company of the Aditya Birla Group said it has received shareholders’ approval for merging the company with Grasim Industries.
“The merger between the two companies of Aditya Birla Group is being done in order to consolidate similar businesses under one roof,” ABCIL said in a BSE filing.
"The equity shareholders and unsecured creditors of the company have, at their respective meetings, approved the scheme of amalgamation of ABCIL with Grasim Industries,” the filing added.
“And this has been done with requisite majority and without any modification,” ABCIL informed.
Earlier in February, the Grasim Industries board had approved to give shareholders of ABCIL one share of Rs 10 each of Grasim for every 16 shares of Rs 10 each they hold in ABCIL.
At that time, Grasim had also said that it would issue 14.62 lakh new shares, which will increase its share capital to Rs 93.31 crore.
The proposed merger will consolidate Aditya Birla Group’s Chloro Alkali business into Grasim and strengthen its existing portfolio of viscose staple fibre, caustic soda and allied chemicals in a standalone company.
ABCIL is a leading producer of Chloro Alkali in India with three plants located in Jharkhand, Uttar Pradesh and Karnataka with an annual installed capacity of 2,93,000 ton of caustic soda.
Grasim is also one of the biggest manufacturers of caustic soda in India with an installed capacity of 452,500 tons per annum.
Its plants are located at Madhya Pradesh and a unit which was recently commissioned in Gujarat.