Grasim Industries Rights Issue: Large Cap Stock Sets Issue Price, Check Rights Issue Dates; Other Details Here

The share price of large-cap stock Grasim Industries Ltd, the flagship company of the Aditya Birla Group traded 0.17% higher at Rs 2072.20 per share at 12:28 pm IST on Friday, a day after the company's Board approved raising Rs 4,000 crore through a rights issue.

The company has fixed January 10, 2024, as the record date for the rights issue. At Rs 2072.20 per share, the company commands a market capitalization of Rs 1,36,443.76 crore. The rights issue is an important event for investors as well as the company's shareholders. A rights issue is when a company issues shares or convertible securities to its shareholders to raise funds or for other purposes.

The cement maker has fixed the rights issue price at Rs 1,812 per share, which is a 12% discount from yesterday's closing price.

Based on the approved terms, the company will issue a total number of 2,20,73,935 rights equity (RE) shares.

Here's what Grasim Industries shareholders have to pay to subscribe to the rights issue:

Entitlement Ratio

The rights entitlement has been fixed in the ratio of six shares for every 179 fully paid-up equity shares of the company held by the eligible equity shareholders as of the record date.

Amount payable per Rights Equity Share On Application:

A sum of Rs 453 per rights share.

Up to three additional calls, with terms and conditions like number and quantum to be decided by the board, which will be completed on or before March 2026: Rs 1,359 per rights share.

Rights Issue Dates

Grasim's rights issue will open for subscription on January 17 and close on January 29, 2024.

Renunciation Period

January 23, 2024, has been fixed as the on-market renunciation period. A rights issue renunciation is when a shareholder wants to sell his or her rights in favour of other investors at a price. On-market renunciation is generally done 3-4 working days before the issue closes, which in this case is January 23.

Impact of Rights Issue:

The rights issue will result in an equity dilution of 3.3%. Post rights issue, the outstanding shares of the company will rise to 68,06,13,006 equity shares. Based on the September quarter shareholding pattern, the promoters owned a 42.75% stake in the company.

In October, the company flagged that it is implementing its highest-ever capital expenditure plan and that the funds raised by the issue will also be largely used towards growth capex.

Grasim Industries stock price:

In the last six months, Grasim Industries shares have gained 16.43%. The last one year, 2-year and 3-year returns from shares of Grasim Industries have gained 21.99%, 18.42%, and 115.54% respectively.

About Grasim Industries Limited:

Grasim Industries Limited is the flagship company of the Aditya Birla Group. It started as a textile manufacturer in India in 1947. Today, it is a leading global player in VSF and the largest chemicals (Chlor-Alkali-s) player in India. It is also the largest cement producer and Diversified Financial Services (NBFC, Asset Management, and Life Insurance) player in India through its subsidiaries UltraTech Cement and Aditya Birla Capital.