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Grasim UltraTech UPDATE

Aditya Birla group company UltraTech will meet tomorrow to consider a proposal from Samruddhi Cement to merge the cement business of group with itself.

Aditya Birla group , which had acquired UltraTech from engineering giant L&T in 2004, had planned to hive-off Grasim cement into Samruddhi, a wholly owned subsidiary of Grasim Industries.

The demerged entity would be listed and then merged with UltraTech. In a filing to the Bombay Stock Exchange (BSE) UltraTech Cement said “it has received a consolidation proposal from Samruddhi Cement Ltd, a wholly owned subsidiary of Grasim Industries.”

Post-merger (Samruddhi and UltraTech), Grasim’s holding in the consolidated entity would be somewhere between 55-65 per cent. Grasim shareholders would hold 35 per cent in Samruddhi post demerger.

The board’s decision to demerge the cement business was unanimous. This also includes the LIC nominee on the board. But now LIC is yet to give its approval to the proposal.

They seek finer details of this entire process and proposal. LIC has asked Grasim to make detailed presentation of the entire process. The key contention is that they want to look at whether it is in the interest of shareholders and most importantly smaller shareholders is what we understand from sources.

Grasim is going to make a presentation to LIC during this week. We must not forget that, LIC owns 12.39% stake in Grasim and has a board seat in Grasim.

Karvy Stock Broking’s research report says…..
“Grasim Industries has proposed to restructure its cement business by transferring its cement business to Samruddhi Cement Ltd. (SCL), and eventually merging it with Ultratech Cement Ltd (UTCL). Post merger the Grasim’s significant value would be contributed by subsidiaries and investments. Hence we believe the discount for holding company would increase and subsequently we have revised our target price downward from Rs 2,303 to Rs 2,092 and maintain underperformer rating on the
stock,”

Attachment:

(Download the detailed Update on Grasim Industries)

Tags: Aditya Birla Group, Grasim, Grasim Industries, Karvy, LIC, Ultratech Cement

Stock Tips For 06-10-2009

The crucial Resistances & Supports for intra-day Nifty Futures.
——————————————————————-
Nifty Fut Res- 5021, 5041, 5057, 5073, 5089.
Nifty Fut Sup-5005, 4989, 4979, 4963, 4950.

BUY NIFTY @ 4990. TGT 4999-5015-5020-5027-5032-5040.
IF STAYS ABOVE 5045 FOR MORE THAN 10 MINUTES THEN EXTENDED TGTS ARE 5051-5062-5072. SL 4970

SELL NIFTY @ 5024. TGT 5018-5013-5001-4992-4985-4976.
IF STAYS BELOW 4970 FOR SOME TIME THEN EXTENDED TGTS ARE 4960-4961-4943 SL 5042

ABAN
BUY @ 1598.4 TGT 1605.35-1612.3-1626.25-1633.25-1640.2-1661 SL 1577.45

ORCHIDCHEM
BUY @ 168.2 TGT 169.7-171.2-174.2-175.7-177.2-181.65 SL 163.7

RANBAXY
BUY @ 396.75 TGT 398.25-399.8-402.85-404.4-405.95-410.5 SL 392.15

HDIL
Buy above 339.3 tgt 342.05, 345.9, 349.7, 352.05 sl 332.15.
Sell Below 332.15 tgt 329.7, 325.8, 323.45, 319.65 sl 339.3.

TATASTEEL
Buy Above 503.15 tgt 505.2, 506.45, 508.5, 511.8, 515.1 sl 497.8.
Sell Below 497.8 tgt 494.5, 492.5, 489.2, 486.5 sl 503.15.

JPASSOCIATE
Buy above 234.4 tgt 236.35, 237.55, 239.5, 242.65 sl 231.25.
Sell below 231.25 tgt 229.3, 226.15, 223.4, 220.50 sl 234.4.

LICHSGFIN
Buy above 766.05 tgt 769, 772.9, 775.3, 779.15 sl 753.65.
Sell below 753.65 tgt 748.8, 746.4, 742.5, 738.65 sl 766.05.

Tags: intraday stock calls, intraday tips, nifty signals