Grasim Industries shares continued to trade under pressure on Thursday after media reports that Aditya Birla Group is planning a merger of Grasim and parts of Aditya Birla Nuvo.
Grasim Industries shares continued to trade under pressure on Thursday after media reports that Aditya Birla Group is planning a merger of Grasim and parts of Aditya Birla Nuvo. Shares of the company plunged as much as 6.21 per cent on Thursday. The scrip declined 6 per cent to Rs 4,851.50 on Wednesday.
At 2.12 pm, shares of Grasim Industries were trading 5.72 per cent down at Rs 4573.95. The scrip opened the day at Rs 4877.75 and has touched a high and low of Rs 4550, respectively, in trade so far. Later, the scrip closed 6.44 per cent down at Rs 4538.95. The company will announce its quarterly results for the quarter ended June 30, 2016 on Thursday later in the day.
On the proposed merger, Grasim Industries in a clarification to bourses said, “No such proposal has been considered or approved by its board of directors which would trigger disclosure requirement. The company futher added that shareholders are advised to exercise caution while trading based on speculative reports.”
For the fourth quarter ended March 31, 2016, the company reported a consolidated net profit of Rs 696.09 crore, up 37.38 per cent, against Rs 506.68 crore in the corresponding quarter a year ago. Net sales of the company jumped by13.69 per cent year-on-year to Rs 9896.43 crore for the quarter ened March 2016 as compared to Rs 8704.75 crore in the same quarter last year.
According to reports, the merger of Grasim and parts of Aditya Birla Nuvo (ABNL) is likely to be followed by the hiving-off the financial services business of ABNL.