Grasim Industries said that its board of directors at its meeting on Monday approved to raise Rs 4,000 crore via rights issue. The record date for the rights issue will be announced later. 

The board “inter-alia approved the raising of funds by way of issue of equity shares of face value of Rs 2 each through rights issue for an amount not exceeding Rs 4,000 crore to the eligible equity shareholders of the company as on the record date (to be determined in due course), subject to receipt of regulatory/statutory approvals”, Grasim Industries said in a regulatory filing. 

A rights issue by a company is offered to existing shareholders to purchase more shares of the company. Usually, such shares are offered at a discount to the market price and thus make an attractive proposition for shareholders to acquire more stake. 

Grasim Industries did not announce the price of the issue at this point in time. 

“The board or a duly constituted committee of the board shall decide all other terms and conditions of the rights issue, including but not limited to the issue price, rights entitlement ratio, record date, timing, terms of payment as may be required from time to time,” said the company.