Everything you need to know about Grasim Industries Limited rights issue

Grasim Industries Limited. (GRASIM) has announced a rights issue of 2,20,73,935 equity shares aggregating up to Rs. 3,999.80 crores. The rights issue opens for subscription on January 17, 2024 and closes on January 29, 2024.

Anyone who holds shares of Grasim Industries Limited. as of January 10, 2024 (record date) will be eligible for receiving Rights Entitlements (REs). These REs will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the REs to apply for the rights shares of the company or you can sell them in the market.

You can check the announcement from the company here.

You will be eligible for receiving Rights Entitlements (REs) if you’ve bought the shares on or before January 09, 2024. The ex-date is January 10, 2024.

Rights issue details

Issue Period January 17, 2024 - January 29, 2024
RE Trading Period January 17, 2024 - January 23, 2024
Issue Price Rs. 1812 per share
Ratio 6:179
EX-date January 10, 2024
Record Date January 10, 2024
Tentative Date of Allotment for rights shares February 08, 2024
Tentative Date of Credit of rights shares February 09, 2024
Tentative Date of Listing for rights shares February 12, 2024

This is a partly-paid issue, meaning you only have to make part payments at the time of application.

Amount payable per equity share Face Value Premium Total
On Application 0.50 452.50 453.00
One or more additional calls as may be decided by the company 1.50 1,357.50 1359.00
Total 2 1,810.00 1,812.00

If you continue holding partly-paid shares of Grasim Industries Limited. when the company makes a call for the balance payment, you will be liable to pay the balance sum. If you have sold the partly-paid shares, the buyer will be liable to pay the sum.

How to apply for Grasim Industries Limited Rights Issue?

Once you either receive the REs from the company or purchase them from the market, you can apply for the rights shares using the below methods;

You can check the application process here.

You will need to enter your Demat account’s Beneficiary Owner ID which is a 16-digit number while applying for the rights issue.

The option to apply for rights shares through the RTAs portal is not available for this rights issue.

What will happen to my purchased holding of RE shares if I do not apply for the rights issue?
Your REs will lapse and you will lose the premium paid to acquire them. The RE will be in the form of temporary demat securities which will lapse if not renounced/exercised once the trading window is closed.

I don’t have the shares but bought REs, am I still eligible to apply for the rights issue?
In case you have bought REs but don’t have shares, you’re still eligible for the rights issue. You may apply for the rights shares either through the RTA’s portal or via net banking ASBA if your bank allows it. If you don’t take any action, and let the REs remain in your Zerodha account, they will lapse after the issue.

You can read more FAQs on Rights Issue and Rights Entitlements here.

1 Like

Rights open from 17.01 to 29.01 …RE will be listed from 17 to 23.01 wherein rights application closes on 29.01 . out of total price 1812 only 453 Payable on application ( partly paid will be listed) plus 1359 on UPTO 3 calls by March 2026.
LISTED around 325 and 453 payable on application and partly paid share will list separately . further 1359 is payable if you continue o hold till the pp turn fully paid

325 + 453+ 1359 = 2137 wherein fully paid price is 2090 …RE traded on premium because of time value of money plus one can sell as pp share too .

I have received 1 share of Grasim RE in my demat account.
Now I am applying for the same through ASBA on my net banking. I can fill all the details in a similar manner like while applying for an IPO. However, in this case it is asking for ‘Composite Application Form No’ which I dont have in any communication I have received through emails.

And without this number, I can not put forward the process.

Please help, where can I find this number.

When will these calls be made by the company?

Also, what will happen if I miss the call money payment as call intimation will be issued by email which might be missed/overlooked?

most of asba bankers have done away with this provision however if your bank wants put any random number say your pan no etc

after application money , balance of 1359 will be called in UP TO 3 calls ( may be all in 1 call or in 2 or max 3) by March 2026.
if you miss the call money intimation there will be another after few days and finally FINAL CALL PAYMENT CUM FORFEITURE NOTICE . bse/nse website , twitter X , money control or even this forum will have updated information as the call money is asked.

GRASIM partly paid share are to be listed from 09 February 2024 ……453 paid and 1359 payable in upto 3 calls by March 2026.