The Board of Directors of Grasim Industries approved the issuing of non-convertible debentures (NCD) on a private placement basis up to Rs 2,000 crore in one or more installments.
This is not the first time the corporation has used NCD to raise funds. It raised Rs 1,000 crore in December last year at a coupon of 7.6 percent.
Non-convertible debentures cannot be converted into business equity shares and must be redeemed at the end of a defined period. NCDs are debt instruments issued by a firm to acknowledge its obligation to repay the principal amount plus a specified interest rate.
Grasim began as a textile company in the country and has since expanded into a variety of companies including viscose, diversified chemicals, linen yarn, and fabric producer in India. The company has recently expanded into the paint industry.
According to Grasim's website, the business plans to construct six manufacturing units in Haryana, Punjab, Karnataka, Tamil Nadu, Maharashtra, and West Bengal until FY 2025, with a total capacity of 1,332 MLPA and a project cost of Rs 10,000 Crore.
Furthermore, five of the six locations have gotten environmental approval. The research and development center has been established and is fully operational. Once operational, it will compete with the country's largest player, Asain Paints.
Grasim Industries Ltd, the Aditya Birla Group's flagship company, reported an 88 percent drop in net profit to Rs 94 crore in the fourth quarter ending March 31, 2023. It ascribed the drop to tax write-backs and other unusual circumstances that impacted the quarter's financial results.
Grasim Industries Ltd reported total sales of Rs 6,645.8 crore in the March quarter, a 4.2 percent rise over the previous fiscal year's similar period of Rs 6,376 crore.
The stock was trading at Rs 1,704 at 11:17 a.m., down 0.7 percent from the previous day's close on the National Stock Exchange. The stock has risen 1.6 percent in the last six months.
