Grasim Industries trades ex-date to spin off its financial business

The stock dipped 7% to Rs 1,013 from its opening level of Rs 1,091 on BSE in intra-day trade

Grasim Industries dipped 7% to Rs 1,013 from its opening level of Rs 1,091 on BSE in intra-day trade after the stock turned ex-date to spin off its financial business.

At 10:29 am; the stock was trading at Rs 1,045, after hitting a low of Rs 1,013 in intra-day trade. A combined 2.94 million equity shares changed hands on the counter on BSE and NSE so far. On Tuesday, the stock of Grasim Industries was closed at Rs 1,306.

Last August, Kumar Mangalam Birla-owned Aditya Birla Group proposed to merge Grasim Industries and Aditya Birla Nuvo and spin off the financial services business, including mutual fund, non-banking financial company (NBFC), life insurance and payments bank under Aditya Birla Financial Services ((now known as Aditya Birla Capital) and list it on the exchanges.

As per scheme of arrangement whereby Grasim Industries will issue three shares for every 10 shares of Aditya Birla Nuvo held by investors. Investors in Grasim will get seven shares of Aditya Birla Financial Services for every one equity share they own.

Aditya Birla Nuvo had already turned ex-date of amalgamation on July 5, 2017.

Meanwhile, the BSE said that, 190.46 million equity shares of Rs 2 each issued pursuant to scheme of amalgamation between Grasim Industries and Aditya Birla Nuvo are listed and permitted for trading on the Exchange with effect from Thursday, July 13, 2017.