CHENNAI: The board of Grasim Industries Limited on Monday approved the raising of funds Rs 4,000 crore by way of a rights issue to the eligible equity shareholders. The funds raised would be used for funding ongoing capital expenditure plans, repaying existing borrowings, and supporting general corporate purposes. Grasim, which is entering the decorative paints business, is implementing its highest-ever capital expenditure plan.
“The company has raised debt to part fund the ongoing capital expenditure plan and the funds raised by this issue will be used towards growth capex. The capital outlay for the company to establish itself as India’s second-largest decorative paints player is on track,” the company said in a statement.
It is also committed to sustaining market leadership in its core businesses Viscose and Chemicals (at Standalone level). Grasim share prices on Monday closed at Rs 1972, down Rs 10.60, or 0.53%. As per the company, the rights issue enables existing shareholders to participate in Grasim’s growth journey.