BackPE firm Convergent Finance invests $27 mn in Borosil Renewables
The investment is structured as a qualified institutional placement of equity shares announced on 14 December, based on the applicable Sebi prescribed pricing formula
PremiumMumbai: Borosil Renewables Ltd, the only Indian manufacturer of solar glass used in photovoltaic panels, has raised Rs200 crore from Convergent Finance LLP and other investors.
The investment is structured as a qualified institutional placement (QIP) of equity shares announced on 14 December, based on the applicable Sebi prescribed pricing formula, the investor said in a statement.
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Shares were issued to Convergent and other investors at ₹126.5 apiece, exchange filings show. On Friday, the company’s shares ended at ₹167.30, up 2.42% on the BSE.
The proceeds of this investment will be used to expand the company’s production capacities at Bharuch, Gujarat.
Post implementation of a scheme of amalgamation and arrangement in February, Gujarat Borosil Limited merged into Borosil and the company was renamed as Borosil Renewables Ltd. Gujarat Borosil had entered into solar glass manufacturing in 2009-10.
The company has developed a fully tempered 2 mm thick solar glass as well as solar glass with the lowest iron content, the statement claimed.
Borosil is expected to benefit from the boom in the deployment of solar power generation capacities, with the Indian government having set a target of increasing capacity from current 40 GW (gigawatts) to 300 GW by 2030 with increased focus on domestic production of modules.
"The Convergent team has the capability to leverage their global network of relationships and add deep value to our business by helping build out our presence internationally. We will also benefit from their experience in M&A, strategic insights and operational expertise," said Pradeep Kheruka, executive chairman of Borosil Renewables.
Borosil is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels, flat plate collectors and green houses. While the company services some of India’s largest solar panel manufacturers, they also export products to Europe, Turkey, Russia, Americas, and MENA regions.
"India is strongly encouraging the development of a solar panel manufacturing ecosystem, and Borosil Renewables is the sole domestic manufacturer of the critical glass component," said Harsha Raghavan, managing partner of Convergent.
Borosil’s manufacturing facility is located in Bharuch, Gujarat, and has a production capacity of 450 tonne per day (TDP). This output is sufficient for the production of 2.5 gigawatts of modules annually with specialized anti-reflective coating. The capacity is being expanded to 5 gigawatts by setting up a completely new furnace and processing facilities to manufacture another 500 TPD.
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