Grasim Industries board approves Rs 4,000 crore rights issue; stock fails to hold opening gains

Grasim Industries witnessed a marginal increase in its shares on January 5 after the company's board approved a rights issue worth Rs 3,999.80 crore.

At 09:18 hrs, Grasim Industries was trading at Rs 2,077.05, up by Rs 8.45 or 0.41 percent, on the BSE.

However, it failed to hold the opening gains and slipped into the red territory trading nearly 0.1 percent lower at 09.35 hrs.

The board, in its meeting held on January 4, 2024, approved a rights issue of 2,20,73,935 equity shares of the company, each on partly-paid basis, for an amount aggregating to Rs 3,999.80 crore.

The rights issue price has been set at Rs 1,812 per equity share when fully paid-up (including a premium of Rs 1,810 per rights equity share).

The rights issue will remain open from January 17, 2024, to January 29, 2024. The record date for determining the shareholders eligible for the rights issue is January 10.

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As of the record date, 6 rights equity shares will be issued for every 179 fully paid-up equity shares of the company held by the eligible equity shareholders of the company.

Earlier this month, the company announced the expansion of its advanced materials capacity at the Gujarat unit.The chemical division of the company has successfully commissioned an additional 123,000 tons’ annual capacity of Advanced Materials (Epoxy Resins and Formulation) manufacturing capacity at Vilayat, Dist. Bharuch, Gujarat.