Grasim Industries & Aditya Birla Nuvo: Marginal Positive Post Correction on Merger Announcement.

India focused Portfolio Advisory - Exp of 40+years, Das Capital Management and Advisors

Arun Thirumalai

India focused Portfolio Advisory - Exp of 40+years

Das Capital Management and Advisors

Das Capital is a research boutique with an aim to continuously map and plan the investment needs of investors focused on India. We have a six member research team with a combined experience of over 40 years as a part of our investment wing. Our team assisted in the setup of Premji Investments, which was one of India’s first family offices focused to managing Mr.Azim Premji personal wealth. We also serve as a research team to two Indian private equity energy funds “Small is Beautiful” and “KSK Emerging India Energy Fund”.

Equity Bottom-Up

<p>We wrote a report on the Grasim and AB Nuvo merger on 27th September 2016 where we stated that post the correction in the price of the two companies after announcement of the merger:</p><ul><li>Grasim shareholders would not stand to gain or lose as prices have run up post the correction (It had seen a decline of 10% from a high of Rs.5348/share after the merger announcement). The per share value of Grasim Industries  is expected to fall due to the equity dilution of 30% post the merger. However, there will…</li></ul>

We wrote a report on the Grasim and AB Nuvo merger on 27th September 2016 where we stated that post the correction in the price of the two companies after announcement of the merger:Grasim shareholders would not stand to gain or lose as prices have run up post the correction (It had seen a decline of 10% from a high of Rs.5348/share after the merger announcement). The per share value of Grasim Industries  is expected to fall due to the equity dilution of 30% post the merger. However, there will…

Grasim Industries

Event Update: Grasim/AB Nuvo Merger