Mumbai, 22 June 2004
The open offer made by Grasim Industries for
30 per cent in UltraTech CemCo, engineering major
Larsen & Toubros demerged cement business,
has sailed through with shareholders tendering
around 49 per cent stake.
The offer by the A V Birla group flagship, which
began on June 7, was made at Rs 342.6 a share.
Financial institutions consisting of Unit Trust
of India, Life Insurance Corporation and the General
Insurance Corporation, have tendered their entire
combined stake of 29.8 per cent in the open offer.
The retail investors, domestic mutual funds, banks,
foreign institutional investors and global depository
receipt holders accounted for the balance 20 per
About 6 crore eligible shares were tendered in
the open offer by the participating shareholders,
constituting over 70 per cent of the eligible
shares that could have been tendered in the offer.
In a statement, the company said, The acceptance
ratio is likely to be around 60 per cent.
The successful completion of the open offer will
result in Grasims stake in UltraTech CemCo
going up to 42.6 per cent.
Grasim currently holds a 12.6 per cent stake in
the UltraTech CemCo. Post completion of the open
offer, Grasim will purchase an additional 8.5
per cent from L&T at Rs 342.60 a share to
take its holding to 51.1 per cent so as to acquire
Grasim has already deposited the full value for
the open offer, at Rs 1279 crore, in the escrow
account and will make the payment to the successful
offerees as per the schedule.