Borosil Renewables surges 13% on successfully raising Rs 200 crore via QIP

The funds raised are planned to be utilized to service its capital expenditure requirements for a brownfield expansion to more than double its solar glass production capacity to 950 tons per day

Shares of Borosil Renewables surged 13 per cent to Rs 189, also its fresh record high on the BSE on Monday, after the company announced the successful completion of fund raising of Rs 200 crore through a qualified institutions placement (QIP).

The company allotted 15.8 million equity shares of face value of Re 1 each at Rs 126.55 per share. Post the QIP issue, the holding of promoter and promoter group will be 61.92 per cent, Borosil Renewables said in a press release.

The funds raised through this QIP will help to undertake planned expansion and the company is excited to capitalise on the business opportunity that industry offers, it said. The company further said that the funds raised via the Issue are planned to be utilized to service its capital expenditure requirements for a brownfield expansion to more than double its solar glass production capacity from 450 tons per day (TPD) to 950 TPD.

Borosil Renewables is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels, solar thermal flat plate collectors and greenhouses and is the only solar glass manufacturer in India. The company commissioned its first solar glass manufacturing facility at Bharuch in the Indian State of Gujarat. The company services India's solar panel manufacturers while simultaneously exporting its products to Europe, Turkey, and North America.

In the past one month, the stock has zoomed 52 per cent as the government is set to levy duty at 9.71 per cent on textured tempered coated or uncoated glass imports (of which the company is the sole manufacturer in India) from Malaysia. In comparison, the S&P BSE Sensex was up 7 per cent during the same period.

"Pursuant to application made by Gujarat Borosil Limited (Company amalgamated with our Company ie. Borosil Renewables Limited, under a Composite Scheme approved by NCLT) to the Directorate General of Trade Remedies, Ministry of Commerce & Industry, Government of India, for imposition of Countervailing Duty on imports from Malaysia of "Textured Tempered Coated or Uncoated Glass"(of which the Company is the sole manufacturer in India). The designated authority has, vide their letter dated December 11, 2020, issued final findings for imposition of Countervailing duty at 9.71 per cent of CIF (Cost, Insurance and Freight) value for a period of five years," the company said on December 14, 2020.

The duty will be effective after the issuance of final customs notification by Ministry of Finance, Government of India in this regard in due course, it said.