In a significant move, Grasim Industries Limited has secured an impressive Rs. 4,000 crore through a rights issue, as greenlit by its board of directors. This strategic financial maneuver is aimed at fortifying the company’s ongoing capital expenditure endeavors, settling existing debts, and bolstering its overall corporate initiatives.
In its ambitious pursuit of transformational growth, Grasim is in the midst of executing its most substantial capital expenditure program to date. While the company has tactfully leveraged debt to partially fuel this undertaking, the proceeds from this rights issue will be predominantly channeled towards sustaining this growth-oriented capex. The capital allocation towards establishing Grasim as India’s second-largest player in decorative paints remains firmly on course. Additionally, the company remains resolute in maintaining its market leadership in core sectors, namely Viscose and Chemicals, at a standalone level. Notably, rating agencies have consistently revalidated Grasim’s ‘AAA’ ratings.
This rights issue extends a valuable opportunity to existing shareholders, inviting them to be a part of Grasim’s exciting trajectory of growth. It’s worth noting that both the Promoters and the Promoter Group have unequivocally affirmed their participation. They are committed not only to fully subscribing to their rights entitlement but also to potentially covering any remaining unsubscribed portion. This resounding endorsement underscores their unwavering belief in Grasim’s promising future.
The terms and conditions of the Rights Issue will be meticulously deliberated upon by the Board or a duly constituted Committee, ensuring strict adherence to prevailing laws and regulatory/statutory requirements. The company is keen on expediting this issuance, contingent on market dynamics and other pertinent factors, including the receipt of any necessary regulatory approvals.
About Grasim Industries:
Grasim Industries Limited, headquartered in Mumbai, India, has evolved significantly since its establishment in 1947 as a textile manufacturer. Over the years, it has expanded its portfolio to encompass various sectors, including the production of textile raw materials such as viscose staple fiber (VSF) and viscose filament yarn, as well as chemicals and insulators. Additionally, Grasim has ventured into the cement and financial services sectors through its subsidiary companies, namely UltraTech Cement and Aditya Birla Capital, respectively. Grasim Industries Limited is a prominent member of the Aditya Birla Group.
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