this was the reason - CVD 
Great, it was a long pending demand of BR… Hopefully they ensure the quality does not deteriorate and monopoly attitude does not make them complacent. As it was being mentioned in my earlier messages, already Module manufacturers have been slightly upset on the delivery schedules of BR, these events should make BR speed up their capex plans.
Disc - Invested
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How much time should it take for the increased capacity to come on line and start showing in numbers, once approved by the company?
And thank you for this thread, invested on reading some great insights and share the positivity around the story!
It is already running on full capacity (2 furnaces). New furnace(double the capacity of current) will be installed probably by 2022. Management should be giving some info after Q3 results.
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Borosil Renewables- QIP Launched
Indicative Deal Size: Up to INR 200 crore (c. USD 27 million)
Indicative Offer Price: ₹ 126.55 per share (20% discount to CMP)
SEBI Floor Price: ₹ 133.19 per share
Sole BRLM: Axis Cap
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I expect their capex plans to accelerate now. They were waiting for clarity on custom duty to announce further capex and raise capital. I hope they go for debt rather than equity offering right now as debt is cheap and equity hasn’t unlocked its full value.
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Coverage by media has started, I expect a few brokerages to start covering the stock as well post QIP.
Post CVD announcement, things have started to move quickly (must be kept ready to go) First QIP announcement (note board meeting time of 9.30pm on Dec 14th about QIP) and now meeting planned on Dec 17 to consider and approve issuance of preferential shares to promoter group entities. Although promoters bringing in more capital in the company is the sign of confidence about future of the company, it would be interesting to see at what price they would be getting the shares/convertible debentures etc. Currently promotors hold 70.5% of the equity, which will get reduced due to QIP dilution. It seems promoters wanted to maintain or increase their shareholding %.
Rights issue could have been more minority investor friendly but lets wait for the details.
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Where did you get the indicative deal size of QIP? I could not find it in the notice to BSE.
Found it in a tweet by Darshan Mehta (ex Bloomberg, CNBC)
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Company did a u-turn in 24 hours… 
It seems sudden stock price run up (and maybe interest generated in the investor community for QIP) may have made them rethink their capex funding plan (may have got too expensive for the promoters to invest) So lets wait to hear from the management in next concall. Hopefully we would have much clearer picture about their capex funding plan by then
But it may have short term negative impact on the stock price tomorrow.
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Have been reading abt this value stock since more than a month on this forum but was not able to put my money to work here for various reasons (which I obviously regret!). just wanted to share that this forum really creates amazing value for the experienced as well as budding investors…
As for the BR story, one of my friends has a solar module manufacturing unit in Gujarat, just spoke to him and he hailed the market leading position on BR. He mentioned raw material price increase is here to stay and BR is just busy in fulfilling orders from Tier 1 players, small players like him are forced to cancel the solar PV module advance orders as they don’t have glass supply (he gets 2 TLs vs required of 12 per month).
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Company clarified today regarding cancellation of the board meeting regarding preference issue. Seems like a technical issue.
Company also issued notice that QIP issue is closed today i.e 17th Dec and they have approved allotment and issuance of additional 1.58 Cr shares (14% equity dilution). QIP price is 126.55 and issue size is 200 Cr.
Now it would be interesting to watch which institutional investors have purchased this stock.
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Franklin Templeton group as it seems from the recent shareholders declaration
Interesting name is Infinity Holdings with 59 Lac shares (4.56%)
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Sept 2020 shareholding
FII/FPI : 0.42%
MFs : 0.02%
17th December 2020 shareholding
FII/FPI : 10.08%
MFs : 2.45%
Infinity Holdings 4.56%
Franklin Templeton 3.9%
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some forecasting effort keeping last qtr as base
Revenue 114 crs, taking same volume and 60% price increases( thanks to scuttlebutt post above by @bajji_s) , runrate could be 175 cr /qtr vicinity.
Expenses were 82 cr in last qtr, let’s say they stay at similar levels, approx 85 crs, given production volume is similar.
Operating profit to be in range of 90 cr i.e. around 50% op margin.
Depreciation etc at 15 cr as last qtr, PBT around 75cr
Tax rate at 28% we can expect 50-55cr net profit run rate for next few qtrs, annual PAT ( next 4 qtrs) around 200 cr.
Current market cap is close to 2000cr.
Of course above is assuming all of tailwind stays, which will not be case and there will be moderation in returns etc over 1+yr, however new capacities would come closer to delivering by that time and could double the revenue rate. However the one factor that market likes is consistency and visibility and both seems to be a high probability in short to medium term.
Demand supply scenario for a low float small cap with monopoly can make wonders for returns.
Successful QIP will keep balance sheet healthy , swift move and timing by management.
Invested from lower levels, adding as well, looking forward for validation and commentary in this quarter numbers.
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