Borosil Renewables plans a ₹675 crore capacity expansion in India and a ₹700 crore fundraising strategy. It will scale back operations in Germany due to declining demand for solar glass in Europe.
The company will scale back operations at its German subsidiary, GMB Glasmanufaktur Brandenburg GmbH, due to declining demand for solar glass in Europe, exacerbated by the dumping of solar modules from Southeast Asia.
On December 18, 2024, the board approved plans to temporarily halt the operations of GMB’s 350 TPD furnace, while continuing limited operations to fulfill existing orders. This decision was prompted by sluggish demand in the European market.
In India, Borosil will expand its Bharuch facility’s capacity by 500 TPD, either through two 250 TPD furnaces or one 500 TPD furnace, at an estimated cost of ₹675 crore. This decision follows the Indian government’s protective measures, including the imposition of a 10% basic import duty on solar glass and provisional anti-dumping duties on Chinese and Vietnamese imports.
Additionally, Borosil has revised its fundraising plans, choosing to raise ₹700 crore instead of its previously proposed ₹450 crore rights issue. The company will issue up to 1.13 crore warrants to non-promoter investors and 18.86 lakh equity shares to the promoter group, subject to shareholder and regulatory approvals.
On December 19, Borosil Renewables’ share price traded 0.02% lower at ₹627 at 10:00 AM on the NSE. The stock opened at ₹628, slightly higher than ₹627.15 at the previous close.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 19, 2024, 10:07 AM IST
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