Grasim exits Birla subsidiary

Grasim exits Birla subsidiary
Published: 11 March 2005

Grasim Industries has parted with its entire 1.42 per cent stake in Basant Kumar Birla’s Mangalam Cement. Grasim, which is controlled by Kumar Mangalam Birla, had 400,000 shares in Mangalam Cement, which was named after him by grandfather BK Birla over two decades ago. Sources close to the development said it was an investment decision.

“It was an insignificant stake, which was monetised by selling in the open market,” sources added. Interestingly, Grasim was one of the bidders for ailing MCL along with Mexican cement giant Cemex SA a few years back. However, nothing had materialised then.

The Rajasthan-based cement company has recently received a Rs 213-crore bailout package from the Board for Industrial and Financial Reconstruction (BIFR) for its revival. BIFR has also approved the conversion of optionally convertible cumulative redeemable preference shares into equity shares at par.