Grasim Industries Rights Issue 2024

Grasim Industries Limited is one of the Aditya Birla Group’s flagship companies, standing as one of India’s foremost publicly traded entities. With a rich history of over 75 years as a textile manufacturer, the company is today a leading diversified conglomerate with a robust presence across multiple sectors. It is a globally significant producer of Viscose, diversified chemicals, and linen yarn and is a key contributor to India’s fabric production landscape. 

Grasim has also ventured into the paints business, establishing 6 manufacturing plants across various locations across India. The company has introduced an online B2B marketplace, ‘Birla Pivot’, specialising in building materials. Additionally, via its subsidiaries, UltraTech Cement and Aditya Birla Capital, Grasim has assumed a significant role as a leading cement manufacturer in the country as well as a major player in the financial services sector.

Grasim Industries Rights Issue 2024

Grasim Industries is conducting its rights issue, starting from January 17, 2024, to January 29, 2024. Under the rights issue, shareholders can receive 6 rights shares for every 179 fully paid-up shares that they hold on the record date. The price is set at ₹1,812 per share, which is roughly 12.47% less than the market price of ₹2,070.35 as of January 10, 2024. The lower price is offered in order to attract more applications and to compensate the existing shareholders for the potential fall in share price.

Important Details of the Grasim Industries Rights Issue 2023

How to Apply for the Rights Issue?

If you own the stock of a company which announces a rights issue, you will immediately receive a message via your registered email from Angel One notifying you of the same. This email will include information related to the rights issue, including the entitlement ratio, record date, etc. Subsequently, you will receive another email from us reminding you of the same roughly 1 week before the opening date.

If you own shares of the company that is offering the rights issue, you will receive a rights entitlement (RE) in your demat account prior to the opening of the rights issue. This entitlement can subsequently be used to apply for the rights shares. However, the rights entitlement will eventually expire if it is not used for the application within the declared time period.

If you are an Angel One user and you own a stock that has announced a rights issue, you will receive an email from Angel One containing the details of the rights issue and the steps to apply for it. There are 2 ways to apply for a rights issue:

1. Online ASBA

You can apply through net banking via an Applications Supported by Blocked Amount (ASBA) process, i.e. if your bank supports it. To support it, your bank must be declared as a Self-Cerified Syndicate Bank. If yes, take the following steps:

1. Ensure that you are eligible for the issue and have the minimum quantity of shares and funds.
2. Visit the bank’s website.
3. Find the option for rights issue.
4. Enter the quantity that you want to buy and submit the application form.

2. Offline ASBA

If you want to apply offline, you must fill out a form and submit it at the Self-Certified Syndicate Bank (SCSB) branch. You can download the application form right from the BSE and NSE websites.

Things to Remember

1. Once you have blocked the amount in your account for the rights issue, you will not be allowed to use it for any other purpose. However, in case the shares are not allocated to you, the amount will be unblocked.
2. You may sell your rights to an issue via the open market through a rights entitlement trading platform of the exchange or through an off-market transaction. This action is termed as the renunciation of rights. You can also choose not to buy further shares.

Grasim Industries’s Current Shareholding

As of September 2023, Grasim Industries’s top promoter was Birla Group Holdings Private Ltd. This company owned 18.98% of the company, while 27.80% was owned by the public.

Final Words

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