Borosil Renewables stock rises 5% after board clears acquisition of two solar firms

Shares of Borosil Renewables rose over 5 per cent today after the firm announced that its board has cleared buying of 100 per cent stake in Interfloat Group, Europe's largest manufacturer of solar glass and GMB Glasmanufaktur Brandenbur. Both companies are engaged in the business of solar glass.

Borosil Renewables stock gained 5.14 per cent to Rs 774.15 against the previous close of Rs 736.30 on BSE. Borosil Renewables stock is trading higher than 5-day, 20-day, 50-day, 100 day and 200 day moving averages.

The stock opened 2.54 per cent higher at Rs 751 on BSE.

The share has gained 20.11 per cent in 2022 and risen 221 per cent in a year. Total 0.53 lakh shares of the firm changed hands amounting to a turnover of Rs 4.05 crore.

Market cap of firm rose to Rs 9,821.62 crore in early trade. The stock hit a 52-week high of Rs 833 on April 25, 2022 and a 52-week low of Rs 228.25 on May 3, 2021.

ALSO READ: Borosil acquires 100% stake Europe's largest solar glass maker Interfloat Group

"The board has approved the execution of a share purchase agreement between the company, the subsidiaries, HSTG Glasholding GmbH and Blue Minds IF Beteiligungs GmbH (SPA) and execution of other necessary documents in regard to the proposed transaction, whereby the company (along with its subsidiaries) shall agree to acquire 100 percent of the share capital of the target companies from HSTG Glasholding GmbH and Blue Minds IF Beteiligungs GmbH," the company said in a release to exchanges.

The company consists of GMB Glasmanufaktur Brandenburg GmbH (GMB), located in Tschernitz, Germany, and Interfloat Corporation, based in Ruggell, Liechtenstein. With its acquisition of the Interfloat Group, BRL's solar glass output will grow to 750 TPD from the current 450 TPD, an increase of 66 per cent, the company said.

Borosil will buy GMB at Euro 24.91 million in cash and an additional amount to be determined based on the performance in the current year of 2024, 2025 and 2026, which will not exceed 50 per cent of earnings before interest and taxes of GMB.

Borosil will also purchase Interfloat for cash consideration of Euro 5.09 million, swap of shares equivalent of Euro 22.50 million and additional amount to be determined based on the performance in the current year 2024, 2025 and 2025 and 2026 which will be not exceeding 50 per cent of EBIT of Interfloat.