Borosil Renewables hits fresh record high, zooms 39% in two days

Shares of Borosil Renewables, formerly known as Borosil Glass Works, surged 16 per cent on Tuesday and hit a fresh record high of Rs 182.60 on the BSE in an otherwise subdued market.

In the past two trading days, the stock of the houseware manufacturer has zoomed 39 per cent as 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.

"Pursuant to application made by Gujarat Borosil Limited (Company amalgamated with our Company ie. Borosil Renewables Limited, under a Composite Scheme approved by NCLT) to the Directorate General of Trade Remedies, Ministry of Commerce & Industry, Government of India, for imposition of Countervailing Duty on imports from Malaysia of "Textured Tempered Coated or Uncoated Glass"(of which the Company is the sole manufacturer in India). The designated authority has, vide their letter dated December 11, 2020, issued final findings for imposition of Countervailing duty at 9.71 per cent of CIF (Cost, Insurance and Freight) value for a period of five years," the company said.

The duty will be effective after the issuance of final customs notification by Ministry of Finance, Government of India in this regard in due course, it said.

Meanwhile, the board of directors of the company is scheduled to meet on Thursday, December 17, 2020 to consider the proposal to infuse capital in lieu of securities, issued through a preferential allotment, not exceeding Rs 25 crore.

In the 2019-20 annual report, the company said it is planning to install a third furnace (SG3) with an installed capacity of up to 500 MT, in view of increasing demand by Indian manufacturers of solar PV modules.

The Board of Directors of the Company have decided to explore various options of fund raising for its company’s expansion plan and have decided to seek approval of the shareholders to raise funds for the Company to the extent of Rs 500 crore, it said.

At 01:50 pm, the stock was trading 10 per cent higher at Rs 173 on the BSE, as compared to 0.2 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over three-fold with a combined 2.9 million equity shares changing hands on the NSE and BSE.