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Hindalco to buy Grasim's 10 pc stake in BCCL

Our Bureau

MUMBAI, Dec. 8

IN a yet another restructuring move within the A.V. Birla group, Hindalco Industries Ltd has decided to acquire 10 per cent stake in Bihar Caustic & Chemicals Ltd (BCCL) from another group company, Grasim Industries Ltd.

Hindalco, which currently holds 10 per cent stake in BCCL, will acquire 7.8 lakh shares amounting to 10 per cent at a price of Rs 13 per share. The entire acquisition aggregates to an amount of Rs 1.01 crores.

Grasim holds 10 per cent stake in BCCL, a joint venture between Bihar State Industrial Development Corporation (BSIDC), Hindalco, Grasim and Pilani Investments, another A.V. Birla company. BSIDC holds 26 per cent stake while Pilani holds 5 per cent. The rest is with financial institutions and the public. Post-acquisition, Hindalco's stake will rise to 20 per cent.

BCCL is a key supplier of caustic soda to Hindalco which purchases 80 per cent of its production. ``Therefore, there appears significant synergy for consolidation of the group's holding under Hindalco Industries Ltd,'' the company informed Bombay Stock E xchange in a notice today.

However, the board of directors of BCCL will remain unchanged.