Grasim Industries gets board approval to raise Rs 4,000 crore via rights issue

17 Oct 2023 , 09:45 AM

Grasim Industries’ Board of Directors has approved a Rs 4,000 crore rights issuance to qualifying shareholders.

The board of directors approved raising funds by issuing equity shares with a face value of Rs 2 each through a rights issue for an amount not exceeding Rs 4,000 crore to the company’s eligible equity shareholders as of the record date,’ the company stated in a filing.

The company will determine the record date in due course and will inform the shareholders soon.

Furthermore, the Board or a committee of the Board will decide on all other aspects of the rights issue, including but not limited to the issue price, rights entitlement ratio, record date, timing, and payment terms.

In India, Grasim Industries, a flagship company of the Aditya Birla Group, is a diverse player and a global manufacturer of viscose, chemicals, linen yarn, and textiles. The company has lately joined the paints market and is establishing six units across India.

The company’s overall net profit fell 18% year on year to Rs 1,576 crore in the June quarter, while revenues increased 11% to Rs 31,065 crore. The company is yet to release its second-quarter earnings.

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