Grasim announces rights issue of Rs 4,000 crore

Grasim Industries , a part of the Aditya Birla Group, is set to launch a rights issue amounting to Rs 4,000 crore. The subscription period is scheduled to commence on January 17, 2024, and conclude on January 29, 2024. The company intends to issue approximately 2.2 crore shares, resulting in a post-issue total of 68 crore outstanding shares. Shareholders will have the opportunity to acquire six shares for every 179 shares they currently hold. The issue price is set at Rs 1,812 per share, a discount of approximately 12.4 per cent from the closing price of the stock on January 4, 2024. Notably, the promoters will also be participating in the rights issue. Rationale behind the right issue The proceeds will be primarily used for deleveraging. Around Rs 3,000 crore will be used for debt repayments and prepayments. The remaining will go towards general corporate purposes. What does Grasim Do Grasim is involved in a diverse array of businesses, including