Grasim sells fertilizer biz to Indorama Corp for Rs. 2,649 crore.

Aditya Birla Group firm Grasim Industries recently said its board has approved the divestment of its fertilizer business for Rs. 2,649 crore.

After market hours, the company said its board approved the sale of Indo Gulf Fertilisers by way of a slump sale to Indorama India Private, a subsidiary of Singapore based -Indorama Corporation.

“The divestment of the fertiliser business by Grasim is a strategic portfolio choice and unlocks value for shareholders. It is in line with the company's strategic thrust on core businesses,” Dilip Gaur, MD Grasim Industries said in a release.

Indo Gulf Fertilisers is engaged in manufacturing, trading and sale of urea and other agri-inputs with a 1.2 Mn TPA Urea manufacturing plant at Jagdishpur in Uttar Pradesh.

The transaction is subject to the necessary statutory and regulatory approvals including approvals of the NCLT, the stock exchanges, Sebi, Competition Commission of India (CCI), the respective shareholders and lenders and creditors of each of the companies, Grasim said in the release.

Ahead of the announcement, Grasim shares closed nearly 3 per cent higher at Rs. 827, while Sensex dropped 0.54 per cent to 43,357.

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