Grasim to issue rights shares at Rs 1,812/share; sets January 10 as record date
Grasim Industries Ltd on Thursday said it will issue shares on a rights basis at Rs 1,812 per share and has set January 10 as the record date to determine eligible holders for the same.
On October 16, 2023, the company received the board’s approval to raise Rs 4,000 crore through the rights issue of shares.
Grasim will issue 2,20,73,935 equity shares on a rights basis, the company said in an exchange filing. Unit holders will get 6 rights shares for every 179 fully paid-up equity shares of the company held by them, as on the record date.
The rights issue will open on January 17, and close on January 29, the company said.
Grasim Industries is the flagship company of the Aditya Birla Group and a diversified player and a global producer of viscose, chemicals, linen yarn and fabrics in India. The company recently entered the paints business and is setting up six plants pan India.
While the company did not mention the planned utilisation of the rights issue proceeds, it could be for funding capital investments.
In the September quarter, Grasim incurred capital expenditure of Rs 16.5 billion, of which, Rs 12.7 billion was towards the paints business. Overall, the company has spent around Rs 49 billion on the paints business.
The paints segment is likely to start operations in the current quarter, with the company receiving necessary approvals to operate plants at three locations.
During the September quarter, Grasim had launched a painting service offering “PaintCraft” across eight major Indian cities. The company launched “Birla Pivot”, its B2B ecommerce platform for building materials, to serve Maharashtra, Madhya Pradesh, and Delhi markets.
In trade on Thursday, shares of Grasim ended 0.1% down on the National
