Borosil Scientific makes strong market debut after demerger

Pradeep Kheruka, promotor of Borosil group, Vinayak Patankar, whole-time director and chief executive officer and Kewal Handa, chairman and independent director, and Chandra Kishore Mishra, independent director of Borosil Scientific Limited at the ringing of opening bell at BSE on June 7 to mark the listing.

Borosil Scientific made strong stock market debut on June 7 by opening 83 percent higher on BSE at Rs 178.18.

The firm had completed its demerger from Borosil Limited in December 2023. After the restructuring, Borosil Scientific Limited was formed, which encompasses a portfolio including laboratory instrumentation, pharmaceutical primary packaging, process systems, along with laboratory glassware and consumables.

The demerger aims to sharpen the focus on the scientific division, allowing for enhanced operational efficiency and targeted growth in the global market, the company said in an exchange filing on June 7.

Vinayak Patankar, whole-time director and chief executive officer of Borosil Scientific said, “As we move forward with the demerger, we are confident that this strategic decision will unlock significant value for our scientific and industrial products business. This restructuring will enable us to attract business-specific investors and strategic partners, providing greater flexibility in accessing capital and fostering focused strategies for sustained growth.”

The company has a revenue target of Rs 500 crore for FY25, Pradeep Kheruka, promotor of Borosil group, told CNBC Awaaz on June 7.

The demerger will allow the firms to attract investors and strategic partners specific to each business. Each business will benefit from a focused management approach, driving growth in their specific verticals and reducing interdependencies, thus minimizing risks between the businesses, the exchange filing said.

On June 7, the firm's quarterly net profit came in at Rs 12.07 crore in March 2024, up 4.51 percent from Rs 11.55 crore in March 2023 quarter. EBITDA was at Rs 20.55 crore in March 2024, up 1.08 percent from Rs. 20.33 crore in March 2023.

Net sales were at Rs 102.66 crore in March 2024 up 13.07 percent from Rs 90.79 crore in March 2023.