Shares of the demerged entity not yet received. Has anyone received\any info regarding the same?
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Borosil Ltd was expected to be listed by now. They may be holding it off due to current market conditions.
Hi Shahid
It seems the delay was related to the inability to post non-demat shares due to the lockdown. See response from another forum (can’t vouch for the authenticity - but seems a reasonable explanation)
https://mmb.moneycontrol.com/forum-topics/stocks/borosil-glass/thread-message-82555929-84355929.html
Wish you the best
Amrish
PS. Disclosure - have a reasonable position in Borosil Limited (the new one of course)
Received an official communication
Dear Shareholder(s),
Borosil Limited allotted equity shares on 13th March 2020 pursuant to a Composite Scheme of Amalgamation & Arrangement and applied for listing of those shares on the same date with BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).
As a part of the listing process, the Company was required to credit shares of the shareholders who held the shares in dematerialized form to their respective demat accounts and to dispatch share certificates in respect of shareholders who held shares in physical form. The Company through depositories credited shares held in demat form by 23rd March 2020 and has received confirmation from NSDL and CDSL for the same. Unfortunately, before it could dispatch physical share certificates, the nationwide lockdown due to COVID-19 was announced. Post offices did not accept the dispatch of physical share certificates deeming it to be a non-essential service. Without a certificate of posting for such shares held in physical form, our listing application with BSE Limited has been kept pending.
Now with resumption of partial working by post offices, we have completed the dispatch of share certificates and have submitted the necessary confirmation to BSE Limited, recently. The BSE is now processing our application further. Once BSE approves the listing, NSE is likely to accord its approval immediately thereafter.
We would like to assure you that the company is making every effort to ensure that the listing of its shares on the BSE and the NSE takes place at the earliest. We expect this to take a few weeks. We regret the delay and any inconvenience caused hitherto owing to extraordinary circumstances completely beyond our control.
Thanking you,
Yours faithfully,
For Borosil Limited
(Formerly known as Hopewell Tableware Limited)
Sd/-
Manoj Dere
Company Secretary & Compliance officer
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I want to know how the business will get bifurcated between these 2 Borosil companies.If some body knows that which business will be part of Borosil renewable and which business will be part of sooner getting listed Borosil Ltd.
Borosil Renewables would have erstwhile business of Gujarat Borosil ie. solar glass business. Cosumerware (including Hopewell) and Scientific instruments (including Klasspack) would be part of yet to be listed Borosil Ltd. Promoter held Vyline Ltd also would be part of Borosil Ltd.
Why Borosil renewable seeing daily Upper circuit since many days.I am not getting whether business of Gujarat Borosil that is solar glass business is also that much in demand among investors…or what is cooking behind the scenes ,any idea
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Please see clarification posted by company to stock exchanges
Also one more reason could be the news below where Gautam Adani speaks about chinese solar module imports could be negligible in next 3-5 years. If that happens, Borosil’s solar glass would have huge local demand…
I guess current anti China and Atmanirbhar campaign works very well for the company. Before Covid, they have added another furnace and added capacity was also full (Pre Covid, company was projecting FY21 topline could be double on FY20). So any new business would mean company has to go for further capacity expansion. So I think it confluence of few good news (Lollapalooza effect?) and maybe some influential investor may have entered the counter (looking at consistent UCL for past 10 days).
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The volumes in the stocks are at a level never seen before with considerable deliverable quantity however we need to ask question to ourselves that when can we see the revenues coming? As per the management, they can do 450 cr revenues however with the imposition of duties from China, I am not sure how much revenue increase can happen. It will directly flow to the bottom line. Before China situation, management was hopeful of 20-25% EBITDA at 400-450 cr revenues which translates to valuations of 20 X EBITDA which isn’t exactly cheap. I guess more clarity will come post results.
Disc. Sold 80% holding today
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Is there any information available on company’s expenditure on R&D expenditure / program ?
Hi any idea on the listing date for Borosil Ltd (consumer and scientific glass biz) ? Appreciate the help.
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Borosil Renewables is erstwhile Gujarat Borosil Ltd. They had only one furnace 2 years back Hence FY 18-19 sales was 216 Cr and capacity 210 MT. They have added 2nd furnace last year and it started production around Jan 2020. So 19-20 sales should be around 230-250 Cr and capacity around 420 Tonnes. 2nd furnace full capacity benefit will accrue in the current year FY 20-21. So company expects sale of @430Cr. In Feb concall, company mentioned that they had enough orders to keep both the furnances fully loaded.
If now company deciding to add 3rd furnace of 500MT capacity, then considering lead time for order, installation and commissioning, it may come in production by second half of FY 22 . So estimated sales for FY 22 could be @600 Cr and FY 23 could be potentially @900 Cr. (provided all furnaces are running full capacity)
I understand there are lots of assumptions but looking at last 2 weeks price action, it seems market is already thinking on similar lines.
Disclosure : invested in borosil glass and gujarat borosil from last 2 years. Forms more than 10% of my PF. Sold some Borosil renewables last week.
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MinOfPower: Propose to impose Basic Custom Duty (BCD), beginning August 2020, on #solar modules, solar cells and solar inverters… Positive for Borosil Renewable
This will benefit yet to be listed Borosil Ltd. which has consumerware and SIP (Scientific and Industrial Products) divisions. Klasspack (now subsidiary of Borosil Ltd.) is in the manufacturing of glass packaging (vials, ampules etc) for pharma companies and Borosil has been adding more capex to Klasspack for past few quarters. (and acquiring more stake in the company too)
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Hello @Marathondreams do you have any idea about what kind of EBITDA management is expecting from Solar Glass? In the recent conf call, management said that they will have EBITDA of more than 20%, but didn’t give any number.
Also, management said that they sell a fraction of glass to Adani and Vikram (top players), where will they sell the additional capacity that they are going to add?
Disc. Invested only in Borosil Limited
No idea about exact EBITDA number forecast since it would be function of selling prices which in turn would be function on anti dumping duty (on China and Malaysian imports). But lets consider what we know. As per yesterday’s concall, March quarter had slow 1st half of Jan and shutdown in second half of March and still they came out with 22% EBITDA. So on steady state level, on fully productive month with full capacity utilization, EBITDA can go upto 25% which can happen maybe next quarter onwards.(assuming virus outbreak slows down so no further lockdowns). Major reason for this is their 1st furnace is refurbished (extended life) so no more depreciation on that furnace (except depreciation on refurbishment cost if they have capitalized it)
About demand, they mentioned that current solar glass demand is 700 T per day which they expect to double in next 3 years based on government focus on Solar and Atmanirbhar abhiyan and announcement from Adani, Renew power etc. Currently company is exporting about 25% of their glass to Europe. So even after increasing capacity to 450TPD as of today and even after next expansion of additional 500TPD, they are confident that they will have enough demand for their glass.
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Okay! So if they move to 25% EBITDA, at 480 cr revenue , they can make 112 cr and the stock would still be at 10X EBITDA. Not sure if we pay this much for semi commoditised business.
Also, did you listen to Borosil Limited concall? The company has come up with bad set of numbers and I want to know why. I wasn’t able to locate the conference call.
I did not check Borosil Ltd results since it is not listed yet. Just checked company website and found out. Pretty bad results. Inventory and other expenses seems to be the reason. Concall happened on 16th July at 10 am. No idea what was discussed unless we see transcript
About Borosil Renewables. I think market pays for growth visibility and since this company has no competition in India (till someone puts up plant which may take 2-3 years to fine tune etc), they will continue to demand premium as long long they continue to deliver. Having said that, management mentioned that Q1 would be bad due to lock downs. So there could be some cool down post Q1 results, when that gets declared.
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I came across very interesting document called “Information Memorandum” filed by Borosil Ltd with SEBI and stock exchanges (maybe). Seems like this is prerequisite for listing on stock exchanges and is similar to DRHP filed by companies coming out with IPO. It provided wealth of information like market size, market share, competitor etc etc. It is a 290 pages long document so be ready for information overload… 
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Latest investor presentation for Borosil Ltd.
borosil_limited_-investor_presentation-mar20.pdf|attachment (3.1 MB)
As per Borosil Renewalable confcall the listing should be a matter of days.
Regards
Raj
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