Grasim Industries' ₹4,000 Crore Rights Issue Oversubscribed Nearly Two-Fold

30 Jan 2024 , 12:03 PM

Grasim Industries announced that its ₹4,000 Crore rights issue has witnessed robust investor interest, being oversubscribed nearly two-fold on the final day of subscription. The company received cumulative bids for approximately 4.34 crore shares, surpassing the 2.21 crore shares offered by the Aditya Birla Group firm, as detailed in an exchange filing.

The rights were issued at ₹1,810 per share, representing a 16% discount compared to the prevailing market price. Grasim Industries’ shares settled at ₹2,103.05 on BSE, marking a 1.37% increase from the previous close.

In a separate disclosure to stock exchanges, Grasim Industries confirmed the repayment of ₹600 Crore to investors holding its commercial paper, which matured on the same day.

The rights issue, which opened on January 17, reflects the company’s commitment to raising ₹4,000 Crore for its next growth phase. The board of Grasim Industries had approved this fund infusion on January 4, issuing 2.21 crore shares with a face value of ₹2 and a premium of ₹1,810.

Grasim Industries, a major player in the Viscose Staple Fiber (VSF) market, is diversifying its portfolio by entering the paints business under the brand ‘Birla Opus,’ with a significant investment of ₹10,000 Crore for establishing greenfield capacities.

Grasim Industries’ consolidated revenues from operations for the financial year ending March 31, 2023, stood at ₹1.17 Lakh Crore.