Grasim Industries Sets Price For Rs 4,000 Crore Rights Issue

Grasim Industries Ltd. has set Rs 1,812 per share as the price for its Rs 4,000-crore rights issue, which is at a 12.47% discount to the current market price.

The company will issue up to 2.2 crore shares on a partly paid basis, according to an exchange filing on Thursday.

Shareholders who participate in the issue will have to pay Rs 453 per share on application, followed by the remaining amount of Rs 1,359 in up to three installments. The board will set the conditions such as the number of calls and the timing and quantum of each call to be completed on or prior to March 2026.

The promoters and promoter group—who held 42.75% stake, as of September last year—will fully subscribe to their rights entitlement and to the unsubscribed portion if any, the company said. Considering this, the promoter entities are expected to deploy Rs 1,710 crore in the rights issue.

The rights issue will be set in the ratio of six shares for every 179 held as of the record date, which has been set as Jan. 10. The issue will open on Jan. 17 and close on Jan. 29.

The Aditya Birla Group company is raising funds for an ongoing capital expenditure plan and to repay existing debt. The board had approved the proposal in October last year.

In September, the cement maker unveiled the brand name of its paint business, where it plans to make a major entry.

The market launch of Birla Opus is scheduled for the fourth quarter of the current financial year. Grasim will offer a full suite of high-quality products in the decorative paints segment.

Ahead of the launch, the company has piloted its painting services in key metros and introduced a range of imported wood finishes. It had previously committed an investment of Rs 10,000 crore towards setting up the paints business, which will have a total capacity of 1,332 million litres per year.

Shares of Grasim Industries closed 0.10% lower at Rs 2,068.60 apiece, ahead of the announcement on Thursday, as compared with a 0.69% advance in the benchmark S&P BSE Sensex. The scrip has gained nearly 5% since Oct. 16, when the fundraising plan was approved by the board.