Grasim rights line to be removed from four major indices from January 23: FTSE
FTSE Russell will remove the partly paid rights shares of Grasim Industries from four of its major indices with effect from January 23, following the commencement of trading in its rights entitlement.
On January 4, Grasim Industries announced raising Rs 4,000 crore through the rights issue of shares.
Following the announcement, FTSE Russell temporarily added the partly paid rights line in its major indices from January 10.
“Rights line will remain in the index at zero value until it commences trading and will subsequently be removed from the index at market price with T+2 notice,” FTSE had said.
The rights line will be removed from All-World index, MPF All-World index, Global Large cap index, and Emerging index, FTSE said in a release on Wednesday. It will also be removed from three of the factor indices of the global index aggregator.
The rights line will be removed from the seven indices at market price, FTSE said.
Grasim Industries’ rights issue opened on Wednesday and will close on January 29. The company will issue six rights shares for every 179 shares held by eligible shareholders.
The rights entitlement of Grasim Industries settled at Rs 351 on the BSE. Shares of Grasim Industries closed 2% down at Rs 2,068.50.
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