Borosil Renewables rallies 13% to hit new high; stock zooms 60% in 8 days

The company said the funds raised through QIP last week will help to undertake planned expansion

Shares of Borosil Renewables (BRL) rallied 13 per cent to hit a new high of Rs 211 on the BSE in Wednesday's intra-day trade on the back of heavy volumes on strong growth outlook. In the past eight trading days, the stock has zoomed 60 per cent, as compared to a 0.25 per cent rise in the S&P BSE Sensex.

At 11:11 am, BRL was trading 12 per cent higher at Rs 208, against a 0.42 per cent gain in the benchmark index. The trading volumes on the counter rose 1.5 times with a combined 2.5 million equity shares changing hands on the NSE and BSE.

Last week, BRL had successfully raised Rs 200 crore through a qualified institutions placement (QIP) issue. The company said the funds raised through this QIP will help to undertake planned expansion and that it is excited to capitalise on the business opportunity that industry offers. It further said 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.

In 2019, BRL had expanded its glass capacity from 180 TPD to 450 TPD, which is equivalent to the production of 2.5 gigawatts of solar modules annually. It would now further expand the capacity to 950 TPD.

Meanwhile, 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.

The Borosil group company 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 services India's solar panel manufacturers while simultaneously exporting its products to Europe, Turkey, and North America.