New Delhi: Grasim Industries Tuesday said it will seek shareholders' nod to raise up to Rs 2,000 crore through private placement basis.
The Aditya Birla Group firm will present the proposal to its shareholders at the Annual General Meeting (AGM) scheduled next month, it said in a regulatory filing.
The firm said it will seek shareholders approval to allow its Board "to make one or more offers or invitation to subscribe to Non-Convertible Debentures in one or more series/ tranches during a period of one year from the date of this AGM of a sum not exceeding Rs 2,000 crore, on a private placement basis..."
Explaining the rationale behind the move, Grasim said it would help augment long-term resources for financing to meet "liabilities of erstwhile Aditya Birla Chemicals (India), which was merged with the company during FY 2015-16, capital expenditure, prepayment of high cost debts and/or general corporate purposes..."
Grasim may offer or invite subscription for secured/ unsecured redeemable NCDs, in one or more tranches on private placement basis, issuable/redeemable at par on such terms and conditions as the Board may from time to time determine, it added.
Earlier this month, Aditya Birla Group said it plans to merge group firms Aditya Birla Nuvo Ltd and Grasim, and hive off financial services business into a separate entity, which will be listed later.
The boards of Aditya Birla Nuvo Ltd (ABNL) and Grasim Industries have approved the composite scheme of arrangement between the two firms and Aditya Birla Financial Services Ltd (ABFSL), a wholly-owned arm of ABNL.
As per the scheme, ABNL will merge with Grasim and after that the financial services business of the combined entity will be hived off and merged with ABFSL, whose shares will consequently be listed.
First Published On : Aug 30, 2016 17:37 IST