Borosil Renewables raises 200 crore from QIP issue

Borosil Renewables said that the securities issue committee of the board approved the closure of the qualified institutions placement (QIP) issue on 17 December 2020.

The sub-committee of the board approved the issue of 1,58,04,030 equity shares at a price of Rs 126.55 per share, aggregating to Rs 200 crore, to the eligible qualified institutional buyers in the QIP.

The issue price is at 4.99% discount to the floor price of Rs 133.19 per equity share. The QIP issue opened on 14 December 2020.

Pursuant to the allotment of equity shares in the issue, the issued, subscribed, and paid-up equity share capital of the company stands increased from Rs 11.40 crore consisting of 11.40 crore equity shares to Rs 12.98 crore consisting of 12.98 crore equity shares.

The company said that the gross proceeds of the issue is approximately Rs 200 crore. After deducting the issue expenses (including fees and commissions) of approximately Rs 4.35 crore, the net proceeds of the issue are approximately Rs 195.65 crore.

In its placement document filed with the bourses, Borosil Renewables said that it intends to use the net proceeds to meet the capital expenditure for setting up a new furnace of 500 TPD with tempering/coating facilities. The new furnace will be placed in a facility adjacent to our existing manufacturing facility at Bharuch, Gujarat. The net proceeds shall also be used for general corporate purposes.

Borosil Renewables is engaged in the business of manufacturing of extra clear patterned glass and low iron solar glass for application in photovoltaic panels, flat plate collectors and green houses.

The company reported a net profit of Rs 14.06 crore in Q2 FY21 as against net loss of Rs 2.17 crore in Q2 FY20. Net sales during the quarter zoomed 97% YoY to Rs 114.09 crore.

The scrip fell 1.25% to Rs 161.30. It traded in the range of 156.20 and 163.90 so far during the day.

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