Grasim Industries To Raise Up To ₹2,000 Crore Via NCDs

Grasim Industries Ltd., the flagship company of the Aditya Birla Group, announced its decision to issue non-convertible debentures (NCDs) amounting to ₹2,000 crore. The issuance, approved by the finance committee of the board of directors, will be conducted on a private placement basis. 

NCD Issuance Details

The issuance of NCDs is aimed at raising funds through private placement. This approach enables Grasim Industries to obtain long-term financing while providing fixed returns to investors. The exact timeline and terms of the issuance have not been disclosed, but the company has clarified that it will be executed in one or more tranches.

The private placement method involves selling NCDs directly to a select group of investors, including institutional buyers and high-net-worth individuals. This approach often results in quicker execution and lower costs compared to public issuance. Grasim Industries’ reputation as a leading conglomerate further adds to the appeal of these NCDs for investors.

Q2 Financial Performance

For the second quarter of the current financial year, Grasim Industries reported a sharp decline in consolidated net profit. The profit dropped 46% year-on-year to ₹1,100.2 crore. Despite this, the company’s revenue increased by 11%, reaching ₹33,562.9 crore compared to ₹30,220.7 crore in the same period last year. The performance underscores contrasting trends of revenue growth and profit contraction, potentially influenced by market dynamics and operational costs.

Grasim Industries Share Performance

As of December 11, 2024, 10:55 AM, the shares of Grasim Industries Ltd. are trading at   ₹2,657.15 per share with a decline of 0.54% from its previous day’s closing price. Over the last month, the stock has seen a surge of 5.36%. The stock has a 52-week high and 52-week low of ₹2,877.75 per share and ₹2016.55 per share respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.