Grasim Industries entered into a share transfer agreement for the divestment of its 100% holding of Grasim Bhiwani Textiles (GBTL), a wholly owned subsidiary, to Donear group of Mumbai.

GBTL has been primarily engaged in the business of manufacturing and marketing of Polyester-Viscose Fabric. GBTL constitutes a very small proportion of Grasim's consolidated financials with a revenue / EBITDA share of less than 1%.

This divestment is the outcome of the business portfolio review exercise from time to time. It is in the direction of consolidation and greater focus on core businesses of the company. Given the size of Grasim's total operations, GBTL's divestment will have a negligible impact on the company's financials.

The transaction represents a change in the ownership of GBTL from Grasim to Donear Group, with no management changes envisaged at the operational level of GBTL.

Donear Group are in the textiles business for the last 30 years and for them the GBTL business will form part of their core business.

Shares of the company gained Rs 4.2, or 0.34%, to settle at Rs 1,255.15. The total volume of shares traded was 116,607 at the BSE (Monday).