Grasim Raising Rs 4,000 Crore Through Rights Issue
The board of Grasim Industries has approved the raising of funds not exceeding Rs 4,000 crore by way of a rights issue, while the rating agencies continue to reaffirm Grasim’s ‘AAA’ ratings.
This Rs 4,000 crore will fund ongoing capital expenditure, repay existing borrowings, and support general corporate purposes.
Grasim is implementing its highest ever capital expenditure plan in history and the company has raised debt to part fund the on-going capital expenditure plan.
In a press release, Grasim said furthermore it is committed to sustaining market leadership in its core businesses of viscose and chemicals
“The capital outlay for the company to establish itself as India’s second largest decorative paints player is on track,” Grasim added
The rights issue enables existing shareholders to participate in Grasim’s growth journey and the promoters and promoter group have confirmed their participation.
“They will fully subscribe to their rights entitlement and also to the unsubscribed portion, if any, demonstrating their deep conviction in Grasim’s growth prospects,” the Aditya Birla Group company stated.
Grasim intends to complete the said issue at the earliest, subject to market conditions and other factors, including the receipt of any regulatory approvals.