AB Nuvo - Grasim Merger, ABFSL Demerger

Soon, AB Nuvo will be merged in Grasim and Aditya Birla Finance Service Ltd. will be demrged from the combined entity. The share swap ratio is like this. For each 10 shares of AB Nuvo, share holder will get 15 Grasim shares and 21 ABFSL shares.

To get the short term benefit of this corporate restructuring, what should be the strategy? Should one buy Grasim or AB Nuvo? How much the minimum quantity?

@RAMA MURTHY SASTRY CHALLA @Srouta Mukherjee @w4wealth @kharb @BombayBoy @Guru Vachaal @Arvind2k

 

I am waiting for Aditya birla financial listing ....
remaining Aditya Birla group companies i am not interested

 

I dont have views for the short term but for long term , its very good value unlocking for the shareholders. I'm holding AB Nuvo, will add more of AB Capital once its de-merged from Grasim.

 

My core question is which one to buy to get more value unlocking benefits.

Grasim or ab nuvo?

 

i my view direct Aditya Birla financial stock buying is better

 

@RAMA MURTHY SASTRY CHALLA sir, can you share your thought process behind your advice that it's better to directly buy the AB financial stock.

 

yes , i am not interested to buy Grasim or AB Nuvo , now i am waiting for AB Financial listing ....
i want to invest in AB Financial only in A Birla Group

 

Sir, I fully understand that you are not interested in buying Grasim or AB Nuvo and your only interest is the financial arm. What I want to know is why is this the case? Why does buying AB Novu and thus eventually acquiring shares in the Financial Arm not make sense or is not better than buying the Financial Arm share directly

 

AB Nuvo

 

Answer to this query will make us understand nuances of value unlocking strategy as followed master investors like Sastry ji,Mr kharb,Mr starry eyes et al

 

it's pretty late now but here's my 2 cents

Grasim and AB Nuvo traded exactly as per the merger ratio, 1.5 Grasim for 1 AB Nuvo share held. The last traded price for AB Nuvo was 1887/88 on July 4, 2017. And it doesn't look like there was any opportunity if you look at the price movement of both, Grasim & AB Nuvo for the YTD period.



I've bought Grasim and intend to hold it even after the record date.

 

Thanks fellow members for your response. I bought 10 shares of ab nuvo. I will get abcl shares after demerger. The discovery price of abcl will be crucial to see.

 

I expect probablity of better value unlocking in A B Finance.Let us see at what price one can buy it.

 

Most of the value may not be available via secondary market purchases. I have gone down the Grasim route post reading this thread.

 

Does it will benefit Aditya Birla money as it is going through lower circuits daily as it is part of Aditya Birla capital regards an thanks