The board of directors of the Aditya Birla Group-controlled Grasim Industries will meet on October 16 to take a call on raising funds through a rights issue, or a preferential issue, or a qualified institutional placement (QIP).
“A meeting of the board of directors of Grasim Industries Limited is scheduled to be held on Monday, October 16… to consider the proposal for raising of funds by way of equity shares or other securities through rights issue, qualified institutions placement, preferential issue or any other method, as may be permitted under the applicable law, subject to such regulatory and statutory approvals as may be required," the company said in an exchange filing on October 12.
The board meeting comes at a time when the leading textile manufacturer plans to make its debut in the paints space with its new paint vertical by the fourth quarter of fiscal 2024. The paint vertical, under the brand name Birla Opus, has an estimated project cost of Rs 10,000 crore.
Grasim, in a press release last month, stated that it has piloted the first-of-its-kind painting services in key metros, as well as introduced a range of imported wood finishes.
According to Aditya Birla Group Chairman Kumar Mangalam Birla, the company is aims to be the No 2 player in the coming years. "Announcing our brand name is the first of many steps that will follow in this direction,” he said. “Our foray into decorative paints is a strategic choice that enables us to tap a high-growth market and expand our presence in the vibrant Indian consumer landscape," he had at the launch of Grasim's pain vertical.
Grasim Industries shares have gained 21.4 percent over one year compared to the Nifty 50's one-year performance at 16.5 percent. The company's market capitalisation to Rs 1.31 lakh crore.
As per June's shareholding records, the company's promoters hold 42.75 percent of the shares. FIIs own 12.29 percent, while DIIs account for 20.7 percent. Of this, insurance major LIC has a 9.3 percent stake in the firm. The public has a 23.95 percent stake in Grasim.
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