Axis Bank extends Rs 5000 Cr credit line to Grasim

Axis Bank Q2FY24 Results: Standalone PAT Rises to Rs. 5,863.56 Cr

Axis Bank Extends Credit Line to Grasim

Grasim Industries, a leading Indian conglomerate, has recently inked three term loan agreements with Axis Bank for a total of Rs 5,000 crore. The company aims to utilize these funds for capital expenditure as well as the repayment of existing loans.

As per the filing with the stock exchange, one secured term loan worth Rs 4,850 crore will be utilized for capital expenditure incurred over the past year, reimbursement of capex, and the repayment of existing borrowings.

While the two unsecured term loans worth Rs 150 crore will be utilized for specific projects, the company has not specified the nature of the projects. However, Grasim Industries had earlier announced that it would invest a whopping Rs 10,000 crore in the paints business.

It is expanding its capacities in viscose staple fiber and chemicals while doubling its epoxy capacity to 246 kilo tonnes per annum by 2023-24.

The company sees the paints business as a high-growth segment and is setting up six manufacturing facilities to establish a pan-India distribution network. It plans to launch its commercial operations in the current fiscal year.

The company has already spent about Rs 1,800 crore on paints capex in the first nine months of FY23, and the total budgeted capex for FY23 stands at Rs 3,500 crore. The company has already spent close to Rs 1,400 crore on capex in the first three quarters of the fiscal year.

About Axis Bank:

Based in Mumbai, Maharashtra, Axis Bank, previously known as UTI Bank, is an Indian financial services and banking corporation catering to retail businesses, SMEs, and large and mid-sized companies. As of 30 June 2016, the promoters and the promoter group own approximately 30.81% of the company’s shares.

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