Grasim Industries, an Aditya Birla Group company, has entered into definitive agreement for divesting its total investment in Grasim Bhiwani Textiles ( GBTL) to Rajendra Synthetics Private Limited, part of Mumbai based Donear Group.

Donear Group is in the textile business for the last 30 years and for it, the GTBL business will form part of their core business. GBTL is primarily engaged in the business of manufacturing and marketing of polyester-viscose fabric. Donear Industries share price rallied more than 7 percent intraday Tuesday after its group company bought polyester-viscose fabric maker from Grasim.

Grasim Bhiwani is engaged in the business of manufacturing and marketing of polyester-viscose Fabric.

GBTL constitutes a small proportion of Grasim’s consolidated financials with a revenue / EBITDA share of less than one per cent. It registered a consolidated revenue of ₹9,980 crore and Ebitda of ₹2,142 crore in the March quarter.

The 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, said Graim.

Given the size of Grasim's total operations, GBTL's divestment will have negligible impact on company's financials, Grasim said in its filing.