Grasim-ABNL merger prospects brighten

After Voda merger, Idea promoters can concentrate on other verticals, a positive for ABNL or Grasim

With Vodafone confirming discussing with the Aditya Birla Group over a potential merger with Idea Cellular, the prospects also brighten for a merger of Aditya Birla Nuvo (ABNL) with Grasim.

With the news, as telecom stocks led by Idea Cellular surged, the stock price of Grasim and ABNL also gained on Monday, by 4-5%.

Among the major concerns being allayed on the proposed merger of ABNL with Grasim was the telecom vertical. While Grasim had only about 4.7% stake in Idea, ABNL has 23.3%. Thus, a merger of ABNL into Grasim would have led to Grasim’s stake increasing about 28%