Mumbai, Oct 16 (IANS): Aditya Birla Group company Grasim Industries on Monday said that its Board of Directors has approved a proposal to raise Rs 4,000 crore through a rights issue.

The board "inter-alia approved the raising of funds by way of issue of equity shares of 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," Grasim Industries said in a filing with the stock exchange.

A rights issue is offered to existing shareholders of a company, enabling them to buy more shares in it. Such shares are usually offered at a discount to the market price in order to make the deal attractive.

Grasim has not decided on the date or price of the rights issue as yet.

“The board or a duly constituted Committee of the Board shall decide all other terms and conditions of the rights issue, including but not limited to the Issue price, rights entitlement ratio, record date, timing, terms of payment as may be required from time to time,” the company said.