Why Borosil Renewables Has Surged 26% in Two Days By Investing.com

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© Reuters.

By Aditya Raghunath

Investing.com — Solar glass maker Borosil Renewables Ltd (NS:) closed at Rs 167 on December 15. That’s up almost 26% from its December 11 closing price of Rs 137.5. Why did it surge suddenly in two trading sessions?

On Monday, December 14, the company announced that it had launched a QIP (qualified institutional placement) issue to raise funds from institutional investors. In a regulatory notice, the company said that the securities issue committee of the company board has approved a floor price of Rs 133.19 per equity share. This QIP floor price was a discount of 15.65% to Borosil’s Monday closing price of Rs 157.9 per share.

On Tuesday, December 15, news broke that a five-year import tax of 9.71% is likely to be levied by the government on tempered, coated, or uncoated glass imported from Malaysia. The duty will be effective once the Ministry of Finance, Government of India issues a final customs notification.

Borosil is the sole manufacturer in India for these kinds of glass. This move will greatly benefit the company.

Borosil’s board of directors is also scheduled to meet on Thursday, December 17, 2020. It will consider a proposal to infuse capital in lieu of preference shares for an amount not more than Rs 25 crore.

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