Grasim had earlier announced buying out 32.42 per cent (out of 32.68 per cent) stake from the Bangurs at a price of Rs 142.30 a share, which is the open-offer price. A market purchase of 9.99 per cent and the subsequent open offer will raise Grasim's stake to 62.42 per cent.

The size of the 11-member board, which includes nine Bangur representatives, is expected to be drastically pruned to six. This will include three Birla nominees, including group chairman Kumarmangalam Birla as the new chairman of Shree Digvijay Cement and one independent director.

At present, apart from the nine Bangur nominees, there are two institutional representatives -- one each from Industrial Development Bank of India and General InsuranceCorporation.

It is believed that all the nine Bangur nominees will resign from the board with the formal transfer of management control. The Bangur nominees include chairman SK Bangur, vice-chairman KK Bangur and the Calcutta-based industrialist PD Chitlangia of Sarda Plywood.

Aditya Birla group sources said, "We cannot for sure say what will be the exact composition of the board till the formal transfer of control is through. But there will be three Birla nominees and one independent director, besides the two institutional nominees."

On the issue of the all the Bangur nominees stepping down from the Shree Digvijay Cement board, sources said: "We will not like to comment on this issue at the moment."

The AV Birla group's acquisition of Shree Digvijay Cement was sealed after protracted discussions with the Bangurs which lasted for over a year. In the meantime, the Bangurs had hived off all the non-cement businesses of the company to other group companies before selling out to Grasim.

The Bangurs,however, have retained a minor stake in the company -- a total of 18,900 equity shares which works out to around 0.25 per cent of the company's equity.

While financial institutions hold 22.6 per cent stake in the company at present, the floating stock is around 33.47 per cent. Banks hold less than 1 per cent in Shree Digvijay Cement.

The company has an 1.25-million-tonne capacity and will take the Aditya Birla group's total annual capacity to over 10 million tonnes. The acquisition will also enable the group to access Shree Digvijay Cement's all-weather working-jetty having a bulk-handling capacity of one million tonnes per annum.

Grasim expects to derive benefit from the use of the jetty for the import of coal and export of clinker and cement. The company will also cater to the Gujarat and Maharashtra markets, which have emerged as the fastest-growing cement-consuming markets in the country.