AB Capital has a bumper listing!

The financial services arm of AV Birla group, Aditya Birla Capital got listed on the BSE today at Rs.261.20 as against expectations of around Rs.20-140.

This listing comes without an IPO through the composite scheme of arrangement under which Aditya Birla Nuvo was merged with Grasim Industries; post this, the financial services arm was demerged into Aditya Birla Capital.   

As per the scheme of amalgamation, Grasim issued three shares for every 10 shares of AB Nuvo held by investors while shareholders of Grasim were given seven shares of Aditya Birla Capital for every five shares held.

Thus in this new entity, Grasim will hold 57.2% stake and the promoters stake in Grasim has also gone up from 31.3% to 38.8%.