The valuation reports of independent valuers appointed by Indian Rayon and Grasim recommending the share ratio would be placed before the boards at meetings to be separately convened for that purpose. At these ensuing board meetings the proposal for the demerger would be placed for final approval.

Indian Rayon will transfer its cement business as a going concern to Grasim by way of a scheme of demerger. Grasim, in turn, will issue shares/ GDRs to Indian Rayon's shareholders/GDR holders at a swap ratio based on the recommendations of independent valuers appointed for this purpose.

Elaborating, Aditya Birla group Chairman, Kumar Mangalam Birla said the move is essential to consolidate the cement business, so as to achieve business synergy in an increasingly competitive environment.