Borosil Renewables to raise up to Rs 450 crore through a rights issue

Borosil Renewables will be raising up to Rs 450 crore through a rights issue, the company informed stock exchanges on June 7, adding that it has approved the Draft Letter of Offer (DLOF) to be filed with market regulator Sebi.

The DLOF will now need SEBI's go ahead, and the entire process could take up to 3-4 months from here on, the company said. "To strengthen the financials of the company aligned with our business strategy of maintaining minimal debt levels, the company’s Board had approved a fund raise", the company had informed earlier in June 2024. The proceeds of the rights issue will be used to prepay part of the term loans.

Borosil Renewables has taken a consolidated term debt of Rs 537 crore from banks as on 31st March, 2024, including Rs 217 crore borrowed in the stepdown subsidiary.

India's largest solar glass manufacturer, Borosil Renewables has a market capitalisation of over Rs 6,500 crore. The company posted revenue of Rs 986 crore for FY24 with a net loss of Rs 17 crore on standalone basis. The company has proposed an addition of a fourth furnace with a capacity of 1,100 tonne per day in CY25. The company said it expects the outlook for solar glass demand to be positive, given the expected growth in solar module manufacturing.