NCLT OKs scheme of arrangement between Grasim and Indorama India

The National Company Law Tribunal (NCLT), Indore Bench at Ahmedabad has sanctioned the scheme of arrangement between Grasim Industries and Indorama India.

Sep 03, 2021 01:09 IST capital market

In November last year, the board of Grasim Industries approved the divestment of the companys fertiliser business, Indo Gulf Fertilisers (IGF), by way of a slump sale to Indorama India (IIP), a subsidiary of Indorama Corporation, Singapore (Indorama Corporation).

The transfer of the business will be for a lump-sum cash consideration of Rs 2,649 crore, to be paid by IIP to Grasim. This consideration is commensurate to the strength and future potential of the business.

Indo Gulf Fertilisers is engaged in manufacturing, trading, and sale of urea and other agri-inputs with a 1.2 million tonnes per annum (MTPA) urea manufacturing plant at Jagdishpur in Uttar Pradesh.

The divestment of the Fertiliser Business is a significant value unlocking exercise for Grasim. It will further enable the Company to pursue growth opportunities in its core businesses, Grasim said in a statement last year.

Grasim Industries is a leading global producer of Viscose Staple Fibre, the largest Chlor-Alkali, Linen and Insulators player in India. Through its subsidiaries, UltraTech Cement and Aditya Birla Capital, it is also Indias largest cement producer and a leading diversified financial services player.

On a consolidated basis, Grasim Industries net profit jumped 612% to Rs 1,667 crore on 53% rise in revenue to Rs 19,919 crore in Q1 FY22 over Q1 FY21.

The Grasim Industries scrip was up 0.88% at Rs 1513.50 on the BSE.

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