Here's why Borosil Scientific share price rose 5% in trade on November 27

Don't want to miss the best from Business Standard?

Borosil Scientific Share Price Today: Shares of glass industry player Borosil Scientific were in demand during intraday trade on Thursday, November 27, after the company announced an update regarding its ongoing acquisition-related developments. The stock advanced 4.75 per cent to touch an intraday high of ₹131.50 on the NSE.

 

Buying sentiment for Borosil Scientific shares remained firm throughout the session. At 1:26 PM, shares of Borosil Scientific were trading at ₹128.90, up 2.68 per cent from the previous close of ₹125.53 on the NSE. This performance came even as the benchmark Nifty 50 slipped 58.60 points, or 0.22 percent, to 26,146.70. Market data showed that a combined 0.04 million equity shares of the company, worth roughly ₹1.50 crore, had changed hands on the NSE and BSE by early afternoon, indicating subdued trading activity in the counter.

 

Despite the uptick, Borosil Scientific shares continue to trade 31 per cent below their 52-week high of ₹190.79, which was hit on July 18 this year on the NSE.

Borosil Scientific announces update on acquisition of Goel Scientific Glass Works

In an exchange filing, Borosil Scientific informed that it has made a further investment in its subsidiary, Goel Scientific Glass Works Limited, through a rights issue. The capital infusion is intended to support Goel’s capital expenses, operational requirements, and general corporate purposes.

 

The company disclosed that the cost of acquisition, or the price at which the shares were subscribed, stands at ₹11,68,15,570, corresponding to 1,16,81,557 equity shares of ₹10 each, allotted at par value.

 

"The transaction falls within the ambit of related party transactions and is at arm’s length. Except for the shares held by the company in Goel, the company has no other interest in Goel," Borosil Scientific said in the exchange filing.

 

Following the allotment, Borosil Scientific’s shareholding in Goel will rise to 99.37 percent, according to the exchange filing. As Goel is already a subsidiary, the transaction qualifies as a related-party transaction, undertaken on an arm’s-length basis, the filing noted. Apart from its shareholding, Borosil Scientific said that it has no other interest in Goel.