Minority shareholders of billionaire Kumar Mangalam Birla-led Grasim Industries have approved its mega merger with Aditya Birla Nuvo Ltd (ABNL) to create a nearly Rs 60,000-crore diversified company.
Over 93 per cent of the minority shareholders of Grasim voted in favour of the plan to merge with affiliate ABNL, Grasim Industries informed BSE. ABNL investors are scheduled to vote on the deal by April 9.
"The proposed resolution approving the scheme was passed with requisite majority by equity shareholders of the company," Grasim said.
According to the filing, 80 per cent of 16.2 crore shares held by public institution cast their ballot, with 14.96 crore or 92 per cent casting their vote in favour of the merger.
Just 28.6 per cent of 11.9 crore public non-institution shareholder participated in the ballot, 97.32 per cent of whom voted in favour of the merger resolution.
Among the promoter group's 14.5 crore shares, 83.5 per cent cast their vote, all in favour of the merger.
Promoter group constitutes 31.2 per cent of the shareholding, while public institutions hold 43 per cent. Remaining 25.6 per cent is with public non-institution.
Overall, 95.64 per cent of the shares 31.8 crore shares that cast vote went in favour of the merger.
Aditya Birla Group had last August announced the merger plan through a stock swap and spin off its financial services business into a separate unit.
ABNL has stakes in telecom and retail businesses while Grasim is the owner of India's biggest cement business through its unit UltraTech.
Shareholders of ABNL will get three new shares of Grasim for every 10 shares they hold.
In the merged entity, which will retain the name Grasim, Aditya Birla Group will hold 39 per cent stake; the remaining 61 per cent will be with the public.
The financial services company, to be called Aditya Birla Financial Services Ltd, is planned to be listed by May or June. Financial services businesses -- from stock broking to insurance -- are currently run by ABNL.
Seven shares of the financial services company will be offered to each share held in Grasim, which will retain 57 per cent stake after the listing.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)