Borosil hikes stake in subsidiary company via subscription to rights issue

Borosil Ltd today informed the stock exchanges that it has invested additional ₹19 crore in its subsidiary company Klass Pack Ltd by way of subscription towards rights issue.

Brosol said Klass Pack has today allotted 2,36,211 equity shares of face value of ₹100/- each at a premium of ₹746.70 per equity share for cash for the total consideration of ₹19 crore.

Post the transaction, Borosil's stake in Klass Pack has increased from 79.53% to 82.49%.

Klass Pack is engaged in the business of manufacturing and supply of pharmaceutical vials and ampoules which caters to the glass primary packaging needs of pharmaceutical companies.

Borosil said Klass Pack will utilize these funds for expansion of its production capacity for its existing products.

Klass Pack, incorporated on May 29, 1991 is engaged in the manufacturing and supply of pharmaceutical vials and ampoules to the pharmaceutical industry for many years and has its manufacturing facilities at Nashik, Maharashtra.

On Monday, Borosil shares closed higher by 5% at ₹655.45 on NSE.