Grasim Industries shares gain as ₹4,000-crore rights issue fully subscribed

The rights were issued at a price of ₹1,812 per share, representing a 12% discount from the prevailing market price at the time.

The rights issue was structured with a ratio of six shares for every 179 shares held as of the record date, which was January 10.

The board of directors in its meeting on January 4 approved the terms of the issuance of partly paid-up equity shares of the company of face value of ₹ 2 each by way of rights issue for an amount aggregating up to ₹ 3,999.80 crore.

The rights issue will translate into an equity dilution of 3.3%. Based on the September quarter shareholding pattern, the promoters held 42.75% stake in the company.

Grasim plans to utilise the rights issue proceeds to support the ongoing capex plan, repay existing borrowings, and to fund general corporate purposes.

A rights issue is a way for a company to raise capital by offering existing shareholders the opportunity to purchase additional shares at a discounted price, typically in proportion to their existing holdings.

This allows shareholders to maintain their proportional ownership in the company while providing the company with additional funds.

At 12.17AM, shares of Grasim Industries were trading 1.25% higher at ₹2,129.35 apiece on BSE.