Borosil Renewables surges 13% ahead of board meet for fund raise

The company will mull fund raise, which may include issuance of equity shares or any other securities of the company, through preferential issue on a private placement basis.

Shares of Borosil Renewables hit a record high of Rs 779, after rallying 13 per cent on the BSE in Friday’s intra-day trade in an otherwise weak market. The surge comes ahead of the board meet for fund raising through preferential issue on private placement basis.

The stock of flat glass manufacturer has rallied 20 per cent in the past three trading days. It surpassed its previous high of Rs 748 on December 17, 2021. At 11:00 pm; the stock traded 12 per cent higher at Rs 772, as compared to 0.73 per cent decline in the S&P BSE Sensex. The trading volumes on the counter nearly doubled as 3.91 million shares changed hands on the NSE and BSE.

“A meeting of the board of directors of Borosil Renewables is proposed to be held on Monday, April 25, 2022, inter alia, to consider potential transactions involving the company, which may include issuance of equity shares or any other securities of the company, through preferential issue on a private placement basis, or any other methods or a combination thereof, subject to such approvals as may be required under the applicable law,” the company said in a statement.

For the first nine months (April-December) of the financial year 2021-22 (9MFY22), Borosil Renewables posted over five-fold jump in net profit at Rs 119 crore against Rs 23 crore in 9MFY21. Meanwhile, revenue from operations grew 51 per cent year-on-year at Rs 465 crore from Rs 308 crore in the same period last fiscal.

Borosil Renewables is a producer of solar glass in the country. With power demand back on track, the solar power outlook in India remains optimistic. "Solar installations account for a major portion of all new power capacity added in India. This robust installation activity also made solar the single largest source of new power capacity additions consecutively in the last 4 years," the company said in its FY21 annual report.

The management expects demand of solar glass to increase as module manufacturing capacity is set to rise to 24 gigawatts over the next two years. "The output from the two existing furnaces as well as the planned new furnace of our company will fall short and leave significant room for further capacity additions, considering the expansion in demand. This demand will only rise with the gradual shift towards bifacial or glass-glass modules," the management added.