Indian producer, Grasim Industries plunged in Mumbai trading after the Indian maker of viscose staple fiber separated its cement unit that contributed 75 per cent of sales.
Grasim’s shares slid 18.5 per cent to 1,890 rupees at 11:52 a.m. local time. The stock slumped 27 per cent intraday, the most since at least January 1991.
Shareholders of Grasim will receive one share of Samruddhi Cement for each held. UltraTech Cement another unit Aditya Birla Group, Grasim’s parent, will combine with Samruddhi.
“The merger will achieve the group’s objective of consolidating its cement business into a single entity, thereby creating a platform for pursuing aggressive growth,” Chairman Kumar Mangalam Birla said on November 15.
The Birla Group in October said it will merge its cement unit into a single company.