Grasim Industries announces price for ₹4,000 crore rights issue
Grasim Industries, on Thursday, announced the price for its ₹4,000-crore rights issue at ₹1,812 per share, reflecting a 12.47% discount from the prevailing market price. It plans to issue up to 2.2 crore shares to promoters and the promoter group, the company said in its exchange filing.
The rights issue is structured with a ratio of six shares for every 179 shares held as of the record date, scheduled for January 10. The subscription period for the issue is from January 17 to January 29.
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This fundraising initiative by the Aditya Birla Group is directed towards supporting its ongoing capital expenditure plan and settling existing debt obligations. The board had granted approval for this proposal in October of the preceding year.
The company announced that the promoters and the promoter group are committed to fully subscribing to their rights entitlement. Additionally, they express their intention to subscribe to any unsubscribed portion.
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In September, the cement manufacturer revealed the brand name for its upcoming foray into the paint business. The market debut of Birla Opus is slated for the fourth quarter of the ongoing fiscal year.
Grasim aims to provide a comprehensive range of premium products in the decorative paints segment. It had initially pledged an investment of ₹10,000 crore to establish the paints business, encompassing a total annual capacity of 1,332 million litres.
Grasim Industries’ shares concluded the day at ₹2,068.60 each, marking a marginal 0.10% decline on Thursday. In contrast, the benchmark S&P BSE Sensex registered a 0.69% gain. Despite this minor setback, the stock has demonstrated resilience, having surged nearly 5% since October 16, the date when the board approved the fundraising plan.
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Published: 04 Jan 2024, 07:29 PM IST
