Grasim Industries To Raise Up To Rs 4,000 Crore Via Rights Issue

Grasim Industries Ltd. will raise up to Rs 4,000 crore through a rights issue, following board approval, to fund an ongoing capital expenditure plan and repay existing debt.

The fundraising will be subject to the receipt of regulatory and statutory approvals, the Aditya Birla Group company said on Monday. The record date will be determined in due course.

The promoters and promoter group will fully subscribe to their rights entitlement and to the unsubscribed portion, if any, the company said.

"The Board or a duly constituted Committee of the Board shall decide all other terms and conditions of the Rights Issue, including but not limited to the issue price, rights entitlement ratio, record date, timing, and terms of payment as may be required from time to time," according to an exchange filing.

"The proposed rights issuance by Grasim aims to fund the ongoing capital expenditure plan, repay existing borrowings, and support general corporate purposes," a separate statement said.

Further, the capital outlay to establish Grasim as India’s second-largest decorative paint player is on track, it said.