Kumar Mangalam Birla is consolidating group investment/holding companies under a few heads. He is planning to merge Trapti Trading, TGS Investments, Turquoise Investments and Finance, and a few other entities with Birla Group Holdings.
The investment companies that would be merged into BGH have substantial stake in major group entities like Grasim, Hindalco, Aditya Birla Capital, Century Enka, Aditya Birla Fashion and Retail.
These companies do not have any stake only in Century Textiles & Industries, which is one of the companies Kumar inherited from his grandfather, Basant Kumar (B K) Birla. Pilani Investments is a major shareholder in that entity.
According to disclosures made by different Aditya Birla Group firms, the NCLT approved the amalgamation of TGS, Trapti, Turquoise, Gwalior Properties, BGH Exim and Seshasayee Properties with BGH late last month.
Some of the major corporate houses like the Singhanias had earlier consolidated group holdings into one or few companies. When contacted, a Birla group spokesperson said that whatever they have to say is there in the stock exchange disclosure.
The merger of some investment companies with BGH will lead to a major consolidation of holdings of A V (Aditya Vikram) Birla Group firms in BGH. Trapti, TGS and Turquoise taken together have over 18% in Grasim. BGH, too, has around 0.83% in the textile giant. So, following the amalgamation, BGH will have close to 19% in the firm.
Total promoter holding of A V Birla Group in Grasim is a little over 40%. So, following the merger, BGH will hold a majority of the 50% of promoter holding in the company. In Hindalco, where, the group has 34.66% stake, these investment companies have close to 10% stake. Additionally, these investment companies have close to 23% in Aditya Birla Retail, where the promoter holding is more at 59.01%