The Board of Directors of Indian Rayon And Industries Limited (Indian Rayon), Indo Gulf Fertilisers Limited (Indo Gulf) and Birla Global Finance Limited (Birla Global) have announced a restructuring proposal for the mergers of Indo Gulf and Birla Global with Indian Rayon. The arrangement, valuation reports and share entitlement ratios have also been approved by the respective boards.
The restructuring has been valued at valued at over Rs. 5,000 crores ($1.1 billion).
Under two separate restructuring schemes, Indian Rayon will issue to 1 equity share of Indian Rayon for every 3 equity shares of Indo Gulf to all Indo Gulf shareholders. Indian Rayon will also issue Birla Global Finance shareholders 1 equity share of Indian Rayon for every 3 equity shares of Birla Global Finance held.
In line with the approval of the Board at the same meeting, Indian Rayon proposes to rename the Company as Aditya Birla Nuvo”, subject to approval of its shareholders. The new name mirrors the transformed character of the company.
