Grasim Industries on Monday, October 16, said it will raise up to Rs 4,000 crore through a rights issue. The fundraise comes a month after the Kumar Mangalam Birla-led Aditya Birla Group flagship announced plans to enter the paint business under the brand name 'Birla Opus' in the fourth quarter of fiscal 2024.

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"the Board of Directors (“the Board”) of the Company at its meeting held today i.e. 16th October 2023 inter-alia approved the raising of funds by way of issue of equity shares of the 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," the company said in an exchange filing.

"We have every reason to believe that we would be a very strong No.2 in the next five years," Birla told CNBC-TV18 in an interview in Davos at the World Economic Forum (WEF) 2022 meeting.

Grasim's foray into the paints business, at a project cost of Rs 10,000 crore, pits against the market leader Asian Paints, which controls nearly half of the country's market share in the sector.

In the first quarter of the financial year, Grasim reported a 56% year-on-year (YoY) decline in standalone net profit at Rs 355 crore for the June quarter, as compared to Rs 808.56 crore in the last year period.

Grasim share price ended at Rs 1,972 apiece, down half a percent, on NSE.