Grasim to announce date for open offer on Friday. The financial institutions (FIs), the largest single block of shareholders in the cement company that is being carved out of Larsen & Toubro (L&T), have decided to participate in the 30 per cent open offer to be made by the AV Birla group. The extent of their participation, however, is yet to be decided.
L&T on Wednesday informed the National Stock Exchange that the effective date for the demerger was Friday, May 14. Grasim will announce the date for the open offer on Friday.
The Bombay High Court last month approved the proposal by L&T to hive off its cement business into a separate company""UltraTech CemCo.
The Unit Trust of India, Life Insurance Corporation, General Insurance Corporation, New India Assurance and Oriental Insurance held a combined stake of 37.31 per cent in L&T as on March 31.
This translates into a stake of around 29.84 per cent in the cement company. The public holding in L&T is 22.27 per cent and the financial institutional investors held 14.86 per cent on March 31.
