Aditya Birla group firm Grasim Industries on Thursday said its board has approved raising Rs 4,000 crore through a rights issue to fund its next phase of growth.
The shares will be issued at a price of Rs 1,812 apiece, according to a regulatory filing.
At its meeting on Thursday, the company's board approved the issuance of "2,20,73,935 equity shares of the company each on a partly-paid basis for an amount aggregating to Rs 3,999.80 crore".
The shares will have a face value of Rs 2 and issued at a premium of Rs 1,810 per share.
The rights issue will open on January 17 and close on January 29.
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Over the rights entitlement ratio, Grasim said it would be "6 Rights Equity Shares for every 179 fully paid-up equity shares of the Company held by the eligible equity shareholders of the Company".
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.
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 green field capacities.
It is also a leading global player in Viscose Staple Fiber (VSF).
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Earlier Grasim had said, "In its transformational growth journey, Grasim is implementing its highest-ever capital expenditure plan".
The rights issue enables existing shareholders to participate in Grasim's growth journey, it added.
For the financial year ended March 31, 2023, Grasim's consolidated revenues from operations were Rs 1.17 lakh crore.
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