Borosil Share Price Surges 4% Following Rs 250 Crore QIP Launch

Borosil share price surged over 6% on June 25, following the company's announcement that its board approved a Qualified Institutional Placement (QIP) at a floor price of ₹331.75 per share. The company aims to raise up to ₹250 crore through this QIP, as stated in an exchange filing.

At 11:57 am IST, Borosil share price were trading 3.7% higher at ₹357.55 apiece on the NSE. With today's spike, the stock has gained over 5% year-to-date. However, over the last year, the stock has fallen 16%, under-performing the benchmark Nifty 50, which surged 25% during the same period.

"The Board has at its meeting held today, i.e., June 24, 2024, inter-alia, considered the following: 1. Approved and authorized the opening of the Issue today, i.e. June 24, 2024; 2. Approved and adopted the preliminary placement document dated June 24, 2024; and 3. Approved the floor price for the Issue, being ₹331.75 per equity share based on the pricing formula as prescribed under SEBI ICDR Regulations," said Borosil in a stock exchange filing.

Earlier this year in January, the company's board approved raising up to ₹250 crore through a Qualified Institutional Placement (QIP). In a filing, Borosil Ltd. stated that the company may offer a discount of no more than 5% on the floor price calculated for the issue, at its discretion. “The issue price will be determined by the company in consultation with the lead manager appointed for the issue,” it stated.

In the fourth quarter of the financial year 2023-2024, Borosil's revenue increased by 30.14% year-on-year, reaching ₹235.61 crore. However, on a quarterly basis, revenue declined by 24.04%. Similarly, its net profit rose by 61.27% year-on-year, amounting to ₹5.08 crore for the quarter. 

The company's net profit margin for Q4 2023-2024 was 2.16%, reflecting a 23.92% increase from the same period last year. However, on a quarterly basis, there was a significant decline of 82.07% in net profit margins.  

Borosil Limited manufactures laboratory glassware and microwavable kitchenware. The company sells and markets its microwavable and flameproof kitchenware, as well as glass tumblers, through over 15,000 retail outlets. It operates three manufacturing facilities.

In the microwavable glassware segment, Borosil Limited has been a market leader with over 60% market share. The company operates four manufacturing facilities, and its products are sold and distributed in more than 70 countries. 

The company's Consumer Products segment accounts for 72% of its revenue. This segment includes microwavable glassware products, glass tumblers, storage containers, stainless steel cookware, opal dining ware, kitchen appliances, lunch boxes, and stainless steel flasks.