10 Oct 2016
Increase in RFPIs / FIIs investment limit from 24% to 30% and Sub-division of equity shares
The shareholders of Grasim Industries Limited (“Grasim”), have today approved an increase in the investment limit for Registered Foreign Portfolio Investors (RFPIs) / Foreign Institutional Investors (FIIs) from the currently approved limit of 24% to 30% of the Company’s equity share capital. The increase will be effective post approval from Reserve Bank of India.
The enhanced limit will create headroom for RFPIs/FIIs allowing them to make further investments in the Company’s equity shares. The headroom is likely to further increase post merger of Aditya Birla Nuvo Ltd. (ABNL) with Grasim, considering the level of RFPIs/FIIs holding in ABNL at 12.1% as on 30th June 2016. Requisite regulatory approvals for the merger are in process.
Further, Grasim’s equity shares have been sub-divided from one (1) equity share of face value of Rs.10 each fully paid up to five (5) equity shares of face value of Rs. 2 each fully paid up, effective from 6th October, 2016.
These measures are aimed at increasing liquidity in the Company’s equity shares.