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Indian Rayon: Now, Aditya Birla Nuvo! - Views on News from Equitymaster

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Indian Rayon: Now, Aditya Birla Nuvo!

Sep 12, 2005

The Aditya Birla Group, a Rs 330-bn conglomerate, involved in businesses ranging from metals, fertilisers, textiles, IT-ITES, finance and life insurance, is merging two of its group companies, Birla Global Finance (BGF) and Indo Gulf Fertilisers (IGF) with Indian Rayon. The consolidated entity will be rechristened Aditya Birla Nuvo and will have Rs 60 bn in consolidated revenues. The swap ratio for the deal is at 1:3 under two separate restructuring schemes. This implies that shareholders in BGF and IGF will receive one share of Indian Rayon for every three shares they hold in either of the two companies.

Shareholding patterns of individual companies and the consolidated entity
Indian
Rayon
Indo
Gulf Fertilisers
Birla
Global Finance
Aditya
Birla Nuvo
Promoters 25.2% 58.2% 74.4% 38.0%
Indian Public* 22.0% 14.9% 16.0% 0.0%
FIIs 12.3% 2.4% 0.0% 15.0%
Banks/FIs, Govt/Non-govt instns 16.1% 9.1% 0.0% 22.0%
Others 24.4% 15.4% 9.7% 25.0%
* For Aditya Birla Nuvo, the shareholding of the Indian public is included in 'Others'

What is the rationale?
As per the management, this merger will enable the consolidated entity to have greater borrowing power. This assumes significance in light of the fact that the entity will be a highly diversified company, involved in businesses ranging from viscose staple fibre (VSF), textiles, carbon black, insulators, IT-ITES, telecom and life insurance. The cash flows from 'value businesses' like VSF and textiles will be used to fund the 'high-growth businesses' like IT-ITES and life insurance. The group also plans to explore opportunities in financial services, asset management and banking in future, provided regulations permit. Clearly, the Aditya Birla Group has ambitious expansion plans and this step signifies this.

We shall soon update our readers with a detailed review of this restructuring exercise of the Aditya Birla Group.


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7 Responses to "Indian Rayon: Now, Aditya Birla Nuvo!"

Shafiullah

Apr 19, 2019

I have Indian Rayon shares in physical form, how can I validate it and dematha? Your early response is highly appreciated.

Like 

Nila Dilip Shah

Oct 6, 2018

I have 123shares of Indian rayon industries under physical fom
can guide me how to demate Aditya birla nuvo

Like (5)

Abha Agarwal

Oct 1, 2018

I have 3shares of Indian rayon in physical form. How to change into ABNuvo

Like (6)

PRASAHANT

Jul 18, 2018

WE HAVE DEBUNTURES OF INDIAN REYON

Like (1)

Kokila Nalinkumar Parikh

Dec 29, 2017

I have 9 physical shares of Indian Rayon and Industries Ltd . How can I convert in to Aditya Birla. I want to know what I need to do with this.

Kokila Parikh

Like (3)

Himansu Chimanlal Shah

Oct 3, 2017

I have physical share
25 of Indian Rayon and Industries ltd folio no H 11787 certificate no 1497711/1497712 distinctive no 48244721 to 48244740 20 share & 48244741 to 48244745 5 share now i want to exchange this shares so where i shall send you please send me your addresses.please do the needful as early as possible Thanking you

Like (7)

amit mittal

Aug 3, 2017

hi kindly confirm that i have 123 shares of indian rayon industries. so how many shares of AB Novo i will get insted of these shares.and how

Regards
Amit mittal
9999344990

Like (12)
  
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