Grasim exits Mangalam Cem, divests 2.16% stake

Grasim Industries, the Aditya Birla group major has exited the B K Birla group company Mangalam Cement. Grasim today divested its entire 2.16 per cent holding in Mangalam through open market operations.

While group officials were unavailable for comment. Sources close to the development said, "Grasim's stake in Mangalam was very small and the current price of the stock is good."

The Mangalam scrip today opened on the Bombay Stock Exchange. at Rs 78.60 and touched a high of Rs 83.65, before closing at Rs 81.20, an increase of 2.78 per cent compared with yesterday's close of Rs 79. The sale of 4 lakh shares would have fetched Grasim approximately Rs 3.1 crore.

Sources close to the development said the sale was a part of the B K Birla group's initiative to untangle cross-holdings among group companies.

"The B K Birla group companies, including Kesoram Industries and Jay Shree Tea, cleared their cross-holdings a few years ago," they said.

However, analysts also believe that the move assumes significance in the backdrop that the group patriarch Basant Kumar is finalising distribution of his empire.

It is decided that his daughters Manjushree Khaitan and Jayshree Mohta will inherit Kesoram Industries and Jay Shree Tea. respectively. But the octogenerian Birla is yet to make up his mind about Mangalam and ECE.

Mangalam Cement was set up by B K Birla nearly 30 years ago. The company was christened after his grandson, Kumar Mangalam, who is now the chairman of the Aditya Birla group.