Borosil Renewables To Raise Rs 700 Crore Via Preferential Warrants, Shares Issue
The solar glass manufacturer plans to invest Rs 675 crore for the expansion of its production capacity by 500 tonnes per day.
Borosil Renewables Ltd. rescinded its earlier rights issue of Rs 450 crore and decided to raise up to Rs 700 crore through preferential issue of warrants and preferential equity shares issued to promoters, according to an exchange filing on Wednesday.
While the company was in process of finalising the letter of offer post receipt of approvals or final observations from the regulatory authorities, the need for larger fundraise has emerged amid the positive developments on the anti-dumping duty on imports, Borosil Renewables said after the meeting of the board of directors where the approvals were given.
The solar glass manufacturer plans to raise Rs 600 crore via the issue of 1.13 crore warrants to investors in the non-promoter category. Each warrant is convertible at an option of the warrant holders in one or more tranches, within the maximum period of 18 months from the date of allotment.
They can be converted into shares of the firm for face value of Re 1 each to the proposed allottees. The issue price is Rs 530 per warrant. It will be issued to 109 investors, the filing stated.
The company will also raise 100 crore through the issue of 18.8 lakh equity shares to the promoter group. It will be through preferential issue on private placement basis at the issue price of Rs 530 apiece, including a securities premium of Rs 529), according to the filing.
Borosil Renewables' board also approved the expansion of its production capacity by 500 tonnes per day against the previous proposal of 1,100 TPD. The company will either set up two furnaces of 250 TPD each in one or two phases or a single furnace of 500 TPD, with the approximate investment of Rs 675 crore.
The decision was taken based on the "revised outlook" of the company after the basic import duty of 10% effective on imports of solar glass from Oct. 1, along with the imposition of an anti-dumping duty on imports of solar glass from China and Vietnam from Dec 4 for six months as a provisional duty, pending the final findings of a dumping investigation by the Ministry of Commerce.
Shares of Borosil Renewables closed 1.41% higher at Rs 627.15 apiece on the NSE, compared to a 0.56% decline in the benchmark Nifty. The share price has risen 42.57% on a year-to-date basis.
