Grasim Industries jumps 2% to 52-week high as board may review fund-raise plan

Aditya Birla Group-controlled Grasim Industries recorded a 2 percent rally in the share price on October 12 to hit a fresh 52-week high. The company’s board of directors will meet to consider raising funds through either a rights issue, or a preferential issue, or a qualified institutions placement (QIP).

As of 11am, shares of the company were trading at Rs 2,000.40, up 1.06 percent on the BSE.

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“A meeting of the board of directors of Grasim Industries Limited is scheduled to be held on Monday, October 16… to consider the proposal for raising of funds by way of equity shares or other securities through rights issue, qualified institutions placement, preferential issue or any other method, as may be permitted under the applicable law, subject to such regulatory / statutory approvals as may be required,” Grasim said in a filing with the exchanges.

Technical analyst Manish Shah said the price action in Grasim shows the presence of a strong underlying trend with a well-defined pattern of higher highs and higher lows.

“The zone at 1,860-1,870 was earlier a support area, and now it has become a support zone. It is a classic breakout-pullback pattern. We are also seeing a flag trend continuation pattern taking place. Buy around 1,920 for a target of 2,050 and above that to 2,150. Keep a stop-loss below 1,850. Hold for several weeks,” he said.

Grasim Industries technical indicators, shareholding pattern

Grasim Industries shares have gained 21.4 percent over one year compared to the Nifty 50’s one-year performance at 16.5 percent. The company’s market capitalisation to Rs 1.31 lakh crore.

The stock’s RSI is at 63.8, indicating the counter is neither in the oversold, nor in the overbought zone. With a one-year beta of 0.97, the stock exhibits average volatility and is also trading above all its crucial moving averages.

As per June’s shareholding records, the company’s promoters hold 42.75 percent of the shares. FIIs own 12.29 percent, while DIIs account for 20.7 percent. Of this, insurance major LIC has a 9.3 percent stake in the firm. The public has a 23.95 percent stake in Grasim.

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