NCLT approves amalgamation of ABNL with Grasim, to list ABFSL

The National Company Law Tribunal (NCLT), bench at Ahmedabad, has approved the merger of Aditya Birla Nuvo (ABNL) with Grasim Industries to be followed by the listing of Aditya Birla Financial Services Ltd (ABFSL).

The approved scheme has been filed with the BSE and the NSE.

It is expected to become effective during the second quarter of the financial year 2017-18.

The merged entity, will have pro forma consolidated revenue from operations of Rs 54,824 crore, EBITDA of Rs 12,259 crore and a net profit after tax and minority interest of Rs 4,076 crore for the year ended March 31, 2017.

It will be top cement manufacturer company in the country, and leading player of VSF and caustic soda manufacturer in India and among the top five fund managers with funds under management of Rs 246,759 crore, a company statement said here.

The merged company will be among the top 5 diversified private NBFCs in India with a lending book (including housing finance) of Rs 38,839 crore and among the top five private sector life insurers and top four asset management companies in the country and third largest telecom operator in India.

"Grasim commands the pole position in the VSF, cement and chlor-alkali businesses in India. All of these businesses have capacity expansion plans to further strengthen their leadership position.

"The financial services business of Aditya Birla Nuvo is among the top 5 fund managers in India. Having built a broad based portfolio and a leadership position in the sector, Aditya Birla Financial Services is well placed to grow rapidly, given the under-penetration of financial products and services in India," Aditya Birla Group chairman Kumar Mangalam Birla, said.

"We will soon be listing the financial services business. This merger marks a milestone, bringing together, the financial strength provided by the debt free balance sheet of Grasim and the growth opportunities offered by ABNL's financial services business.

"I believe, the merger will enable fast paced growth and create enormous shareholders' value," Birla said.

"The combination of Grasim's cash generating manufacturing businesses and ABNL's high growth service sector businesses, is a win-win for the both the set of shareholders.

"Aditya Birla Financial Services has scaled up its AUM at a CAGR of 23 per cent to USD 38 billion and lending book at CAGR of 61 per cent to USD 6 billion during past five years. It continues to widen and deepen its business portfolio," Aditya Birla Group CFO Sushil Agarwal said.

Grasim's strong parentage will enable financial services business to continue this growth momentum and enhance its competitive advantage.

The listing of financial services business will further enhance the shareholder value, Agarwal said.