Shares of Borosil surged more than 4% to reach an intra-day high during early trade on Tuesday, following the company’s announcement on June 24 regarding its board’s approval of a Qualified Institutional Placement (QIP) at a floor price of Rs 331.75 per share. The share price climbed 6.66%, hitting an intra-day high of Rs 367.90 on the NSE.
In a regulatory filing, Borosil stated, “We further wish to inform you that the Management Committee has fixed the ‘Relevant Date’ for the purpose of the Issue, in terms of Regulation 171(b) of the SEBI ICDR Regulations, as June 24, 2024, and accordingly the Floor Price in respect of the Issue based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is Rs 331.75 per Equity Share.”
This move is in line with the company’s previous resolution to raise funds up to Rs 250 crore through this route, as approved during a meeting held on January 24, 2024, and subsequently ratified by shareholders in a special resolution on February 20, 2024.
Additionally, the management committee of Borosil’s Board has approved the preliminary placement document and application form for the QIP. According to SEBI regulations, the company is permitted to offer a discount of up to 5% on the floor price for the QIP.
The final issue price will be determined through consultation with the appointed lead manager for the QIP, ensuring adherence to regulatory norms and market conditions.
Borosil Q4FY24 Performance
In the March quarter, the company’s consolidated revenue from operations decreased by over 8% to Rs 283.11 crore, down from Rs 309.05 crore in the same quarter of the previous fiscal year. Sequentially, there was a decline of more than 14% from Rs 330.01 crore in the quarter ended December 2023.
For the fiscal year FY24, the company reported a significant growth in revenue from operations, rising by more than 53% to Rs 1,369.28 crore, compared to Rs 894.03 crore in FY23. The renewable energy firm attributed the decline in revenue from overseas subsidiaries to a slowdown in demand during the March quarter.
However, despite the revenue growth, the solar glass manufacturer incurred a loss of Rs 53.32 crore in the March quarter, in contrast to a net profit of Rs 10.5 crore in the corresponding quarter of the previous fiscal year.
Stock Performance in last one year
In terms of stock performance, Borosil shares have demonstrated mixed returns across multiple time frames. Over the past month, the stock has delivered a commendable 5.61% return, showcasing its stability and growth potential. In the last six months, the stock has yielded returns of 3.31%, indicating a strong upward trend.
Year-to-date, Borosil shares have surged by 5.40%, reinforcing the stock’s positive momentum in the current fiscal year. However, looking at the broader picture, the stock has delivered negative returns of 16.51% in the last twelve months.
What is QIP based Fundraising?
QIP, or Qualified Institutional Placement, serves as a primary fundraising mechanism for listed companies. Introduced by SEBI, it enables these companies to raise capital by issuing securities to qualified institutional buyers (QIBs).
Previously, raising funds domestically posed significant challenges, prompting Indian companies to seek financing from international markets. To address this, SEBI implemented the QIP process to facilitate easier capital raising within the domestic market.
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