Corporate Bureau
Business Standard
Mumbai, 22 June 2004

The open offer made by Grasim Industries for 30 per cent in UltraTech CemCo, engineering major Larsen & Toubro’s 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 cent.

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 Grasim’s 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 management control.

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.