Aditya Birla Group's flagship Grasim Industries set the price for the rights issue, approved in October, at Rs 1,812 per rights equity share as the cement maker plans to raise funds not exceeding Rs 4,000 crore to fund the ongoing capital expenditure plan and repay existing borrowings.
The company will issue a total number of 2,20,73,935 rights equity (RE) shares. On a fully paid basis, it will cost investors Rs 1812, a discount of 12.40 percent from the last closing price.
A rights issue is the issuance of shares or convertible securities by a company to its shareholders. Companies often take this route to raise funds for various purposes.
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.
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.
Meanwhile, the record date for determining the shareholders eligible for the rights issue is January 10. The issue will open on January 17 and close on January 29, according to the filing.
On application, a shareholder will have to pay Rs 453 for a partly paid share. The rest of the amount needs to be paid in addition to three calls as and when decided by the company by March 2026.
Post rights issue, the outstanding shares of the company will rise to 68,06,13,006 equity shares.
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