Ultratech's nod for Samruddhi merger

Effectively, Samruddhi shareholders will get four UltraTech shares for every seven Samruddhi shares held.  Consequently, UltraTech will issue 14.95 crore new shares and as a result, its equity capital will be hiked to Rs 274.2 crore.  As Grasim-Samruddhi ratio stood at 1:1, analysts aver that the swap deal appears skewed in favour of Grasim shareholders and not UltraTech. 

Even as the merger is subject to approvals from the Bombay and Gujarat High Courts, the appointed date for the merger is July 1, 2010 and post merger UltraTech will have 20 per cent of market share.