The board of Grasim Industries, part of Aditya Birla Group, have approved the raising of funds not exceeding Rs 4,000 crore by way of a rights issue to the eligible equity shareholders.The proposed rights issuance by the company aims to fund the ongoing capital expenditure plan, repay existing borrowings, and support general corporate purposes.This is its highest ever capital expenditure plan, according to the company. The promoters and promoter group have confirmed their participation in the rights issue.The company intends to complete the said issue at the earliest, subject to market conditions and other factors, including the receipt of any regulatory approvals.
Grasum Industries has raised debt to part fund the on-going capital expenditure plan and the funds raised by this issue will also be largely used towards growth capital expenditure.
The capital outlay for the company to establish itself as India’s second largest decorative paints player is also on track.
The company reported consolidated net revenue of Rs 1,17,627 crore and EBITDA of Rs 20,478 crore in FY 2023.