NEW DELHI: Grasim Industries, the flagship company of the Aditya Birla Group, will issue 2.2 crore rights shares at Rs 1,812 a piece to raise around Rs 4,000 crore. In an exchange filing, Aditya Birla Group said each rights share will have a face value of Rs 2 and eligible equity shareholders would be able to subscribe to the issue at a premium of Rs 1,810 for each share.
The eligible shareholders will be allotted 6 rights issues for every 179 fully paid equity shares of the company. The issue opens on January 17 and closes on January 29. After the issuance, the outstanding shares of the company would be 68.06 crore. The board of directors of Grasim Industries had on October 16 approved the raising of Rs 4,000 crore through a rights issue.
Rights shares are issued to existing shareholders at a discount. Share of Grasim Industries on Thursday closed at Rs 2,063 per share. Grasim is a leading global player in viscose staple fibre (VSF) and a prominent producer of Chlor-Alkali, advanced material, linen yarn and fabrics in India. Grasim has also ventured into the paints business and has set up a B2B online marketplace for building materials. It is the largest cement producer and a diversified financial services player in India via its subsidiaries UltraTech Cement and Aditya Birla Capital.
“Company has raised debt to part fund on-going capital expenditure plan and the funds raised by the issue will be largely 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 had earlier said while announcing the Rs 4,000 crore rights issue.