Shares of Grasim Industries witnessed volatility in morning trade after it announced merger of Aditya Birla Chemicals (India) Ltd (ABCIL) with itself.
The company announced the merger yesterday after receiving necessary approvals.
Following this, the shares opened on a bullish note at Rs 3674.35 on the BSE today. After touching an early high of Rs 3689.70, the shares were later trading at Rs 3634.10, down 0.65 per cent on the BSE around 1215 hours.
Similar movement was seen on the NSE as well, where the scrip opened at Rs 3,662.50 and touched an early high of Rs 3,691.70 and a low of Rs 3,626.50. It was trading at Rs 3,645.20, down 0.33 per cent on the NSE at 1215 hours.
The merger will be effective from the appointed date of April 1, 2015 and the share capital will increase from Rs 91.88 crore to Rs 93.34 crore, the company said in a statement yesterday.
Post the merger, Grasim, the leader in chlor-alkali manufacturing in India, will see its installed capacity increase to 8,04,000 TPA from 4,53,000 TPA, it added.
“This merger has resulted in the geographical diversification of the chlor-alkali business of the company.
It also enables the business to capitalise growth opportunities backed by Grasim’s inherent strengths,” it said.