Grasim Industries Rs 4,000 crore rights issue over subscribed two-fold

Grasim Industries said its Rs 4,000 crore rights issue has been subscribed nearly two-fold on the final day of subscription on Monday.

The company has received a cumulative bid for nearly 4.34 crore shares as against 2.21 crore shares offered by the Aditya Birla Group firm, according to an exchange filing.

The rights were issued at Rs 1,810 per share, which was 16 per cent less than the prevailing market price.

Shares of Grasim Industries Ltd on Monday settled at Rs 2,103.05 on BSE, up 1.37 per cent from previous close.

In a separate filing to stock exchanges, Grasim Industries said it has repaid Rs 600 crore to investors of its commercial paper which matured on Monday.

Grasim Industries' right issues opened on January 17.

Earlier on January 4, the board of Grasim Industries had approved raising of Rs 4,000 crore through a rights issue to fund its next phase of growth by issuing 2.21 crore shares having face value of Rs 2, with a premium of Rs 1,810.

In October last year, Grasim Industries had said it would raise Rs 4,000 crore by issuing equity shares of face value of Rs 2 each through a rights issue to fund its next phase of growth.

Among others, the company is entering into the paints business through the brand 'Birla Opus', where it is investing Rs 10,000 crore to set up greenfield capacities.

It is also a leading global player in Viscose Staple Fiber (VSF).

The rights issue enables existing shareholders to participate in Grasim's growth journey, it added.

For the financial year ending March 31, 2023, Grasim's consolidated revenues from operations were Rs 1.17 lakh crore.