The Grasim board that met today has decided to demerge its cement business into Samruddhi Cement, a wholly-owned subsidiary of the company. Grasim’s shareholders would receive one equity share of Samruddhi for every one share they held in Grasim.
Samruddhi’s share post demerger would be in addition to that of Grasim’s and Grasim shareholders would own 35% of Samruddhi. “Post demerger, Grasim will own 65% of Samruddhi,” stated the company’s press release adding that Samruddhi would be listed post the demerger scheme is made effective.
Samruddhi is yet to make formal consolidation proposal to UltraTech Cement board.
For the company's complete press release, click here.
Kumaramangalam Birla Chairman of Aditya Birla Group says that the board considered various other options before approving the structure and only proposals ensuring continued control and strategic interest were considered. “The move reaffirms the continuing interest in the cement business.”
Grasim’s management, while addressing a press conference, says the transfer from the company will not include investment in UltraTech Cement.
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