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Indian indices are trading on a volatile note today. After opening firm, they inched southwards, but are presently trading almost flat. Sectoral indices are trading on a mixed note with stocks from the metal and oil & gas sectors leading the gains. IT stocks are however trading in the red.
The BSE Sensex is trading up 15 points (up 0.1%) and the NSE Nifty is trading up 13 points (up 0.2%). The BSE Mid Cap index is trading up 0.5% while the BSE Small Cap index is trading up by 0.7%. Gold prices, per 10 grams, are trading at Rs 25,360 levels. Silver price, per kilogram is trading at Rs 33,686 levels. The rupee is trading at 66.50 to the US$.
As per a leading financial daily, Grasim Industries has announced the merger of Aditya Birla Chemicals (India) Ltd (ABCIL) with itself. The merger will be effective form the appointed date of April 1, 2015.
For the merger, Grasim will issue 14.62 lakh equity shares to the eligible shareholders of ABCIL. These will be issued in the ratio of one equity share of Rs 10 each of Grasim for every 16 shares of Rs 10 each of ABCIL.
After the issue, the share capital of Grasim will increase from Rs 919 million to Rs 933 million. Post this merger, Grasim will see its installed capacity increase to 804,000 tonnes per annum from 453,000 tonnes per annum earlier. The company said that the merger has resulted in the geographical diversification of the chlor-alkali business. It also said that the merger would enable the business to capitalize on growth opportunities backed by Grasim's inherent strengths.
Grasim Industries is the flagship company of Aditya Birla Group. The company operates in four segments, namely Fibre and Pulp, Chemicals, Cement and Textiles. During the first half of the financial year 2015-16, the company reported good volume growth in the VSF segment aided by the ramping up of the newly commissioned Vilayat plant. You can read our detailed result analysis of the company here to know more (subscription required).
After bearing most of the brunt in yesterday's trading, telecom stocks today are trading on a positive note with Himachal Futuristic and AGC Networks leading the gainers. Idea Cellular has partnered with entertainment company Eros International for the digital content distribution. The partnership is for the digital content distribution for over-the-top distribution service ErosNow.
This deal is said to allow Idea's 4G subscribers to access ErosNow's premium bundled services including movies, music, TV content, ErosNow originals and much more. The company management regarding this said that they are strengthening the company's 4G portfolio and digital presence through an assortment of digital content in partnership with leading content aggregators, handset manufacturers and e-commerce retailers.
On a separate note, Idea Cellular recently launched 4G services across five southern states. It further plans to expand to 750 towns in 10 service areas by June 2016.
Presently the stock of Idea Cellular is trading up by 1%.
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