On Wednesday, Aditya Birla group representing Grasim Industries Ltd plans to raise funds to Rs 2,000 crore through debenture of its capital expenditure programme. The company has lined up investment for a foray into decorative paints, estimated at Rs 10,000 crore by the financial year 2024-25.

The company spokesperson declined to comment on debt-raising plans. While the planned Capex towards the paint business would entail some debt funding, the overall debt coverage metrics for the company are expected to remain comfortable.

• Stocks Under F&O Ban: Adani Enterprises, Aarti Industries, Indraprastha Gas, and Others 
• RBI Defends Currency Moves to Protect Economy
• Trump 2.0: Drilling, Climate Rollbacks, and Global Energy Concerns
• Nvidia’s AI Chip Demand Soars, But Slowing Sales Growth Worries Investors
• Karnataka CM Siddaramaiah Meets UK Envoy, Highlights Progressive Industry Policy

The past several years resulted in a healthy financial profile for Grasim, despite CAPEX and investment in subsidiaries and Joint Ventures, ICRA said. ICRA has assigned AAA\ stable rating to non-convertible debentures.

The company is at zero net debt with net cash of 7,553 crores as of March 31, 2022. The total Capex spent during FY22 stood at Rs 2,537 crore, including Rs 579 crore spent on the paints business. In FY22, the company neared the completion of its Rs 7,700-crore CAPEX cycle for its viscose staple fiber and chemical businesses.

In the post-results (FY22) statement regarding paints business activities, Grasim said the business is focused on the timely execution of its capacities. The civil construction has already commenced at two plant sites (Panipat and Ludhiana) and is expected to start shortly at Chamarajanagar.