Aditya Birla Chemicals (ABCIL) today said it has received shareholders' approval for merging the company with Grasim Industries. The two companies of Aditya Birla Group are being merged in order to consolidate similar businesses under one roof.
"The equity shareholders and unsecured creditors of the company have, at their respective meetings, approved the scheme (of amalgamation of ABCIL with Grasim Industries) with requisite majority, without any modification," ABCIL said in a BSE filing.
In February, the Board of Grasim Industries 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.
Grasim had 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 Chlor-Alkali business into Grasim and strengthen its existing portfolio of viscose staple fibre, caustic soda and allied chemicals in standalone company," Grasim had said.
ABCIL is one of the Chlor-Alkali companies in India with three manufacturing plants located at Rehla (Jharkhand), Renukoot (UP) and Karwar (Karnataka) with an installed capacity of 2,93,000 tonnes of caustic soda per annum and 110 MW of captive power plant.
Grasim is one of the manufacturers of caustic soda in India with an installed capacity of 4,52,500 tonnes per annum.
Its plants are located at Nagda (Madhya Pradesh) and a unit which was recently commissioned at Vilayat (Gujarat).