Grasim Rights Issue: Here's all you need to know

On Application: A sum of ₹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: ₹1,359 per rights share.

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

The On-market renunciation period has been fixed as January 23, 2024.

A rights issue renunciation is when a shareholder wants to give up his or her rights in favour of other investors at a price. This is done by an investor who is unwilling to accept the rights offer and wants to sell shares of the company to another person.

On-market renunciation is when rights are renounced on the exchanges at a better place. It is generally done 3-4 working days before the issue closes, which in this case is January 23.

Renunciations can also be done off-market, where the buyer and seller mutually agree on a price and complete the renunciation off-market. This can be done till the issue closes but in a way that the buying investor has enough time to apply for the rights issue.

Shareholders will be entitled to six rights shares of Grasim for every 179 shares that they own in the company.

The rights issue will result in 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 use the rights issue proceeds to fund the ongoing capex plan, repay existing borrowings, and support general corporate purposes.

Shares of Grasim ended 0.4% lower on Thursday at ₹2,063. The stock had gained nearly 25% in 2023.