Grasim Industries, an Aditya Birla Group company, has reported that its rights issue to raise ₹4,000 crore was fully subscribed on Monday. The company has repaid ₹600 crore to investors of its commercial paper which matured on Monday.
The rights issue opened for subscription on January 17 and closed on January 29, said Grasim Industries.
12% discount
The rights issued at a price ₹1,812 per share, reflecting a 12 per cent discount from then prevailing market price. Shares of the company was up by 1 per cent at ₹2,103 on Monday. The rights issue was structured in the ratio of six shares for every 179 shares held as of the record date of January 10.
The fresh funds were raised to support the ongoing capital expenditure plan and settle existing debt obligations.
Also read: Aditya Birla Group to venture into paints, jewellery businesses this year
Last September, the company revealed the brand name for its upcoming foray into the paint business as Birla Opus, which was officially launched this month.
Grasim aims to provide a comprehensive range of premium products in the decorative paints segment. It had initially pledged an investment of ₹10,000 crore to establish the paints business, encompassing a total annual capacity of 1,332 million litres.