Shares of Borosil Renewables, formerly known as Borosil Glass Works, grew 16% on Tuesday and hit a new record of Rs 182.60 in the ESB in an otherwise subdued market.
In the past two business days, the cutlery manufacturer’s stock has increased 39% as the government will pay a tax of 9.71% due to textured tempered coated or uncoated glass imports (of which the company is the only manufacturer in India) from Malaysia .
“At the request of Gujarat Borosil Limited (a company affiliated with our Company ie Borosil Renewables Limited, under a Compound Scheme approved by NCLT) to the Directorate General of Commercial Resources, Ministry of Commerce and Industry, Government of India, for imposition of Import Compensation Tax of Malaysia of “Textured Tempered Coated or Uncoated Glass” (of which the Company is the sole manufacturer in India) The elected authority, seeing its letter of 11 December 2020, published final results for imposition of Compensation Tax. 9.71 percent of CIF (Cost, Insurance and Freight) value for a period of five years, ”the company said.
The tax will be implemented after the issuance of a final customs notice by the Ministry of Finance, Government of India in this regard in a timely manner, it said.
Meanwhile, the company’s board is due to meet on Thursday, December 17, 2020 to consider the proposal to fill capital instead of securities, issued by preferred donation, no more than Rs 25 crore.
In the 2019-20 annual report, the company said it plans to install a third furnace (SG3) with an installed capacity of up to 500 MT, given the growing demand from Indian manufacturers of solar PV modules.
The Company’s Board of Directors has decided to explore various fundraising options for its company’s expansion plan and has decided to seek shareholder approval to raise funds for the Company up to $ 500 million, according to it.
At 01:50 pm, the stock traded 10% higher at Rs 173 at the ESB, compared to a 0.2 per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped threefold with a combined 2.9 million shares changing hands on the NSE and BSE.