Borosil Glass stock closes 14.63% higher on nod to issue bonus shares, restructuring plans

The Borosil Glass Works stock rose as much as 20 per cent to hit upper circuit of Rs 1,058 in trade today a day after its board approved the issue of bonus shares in the ratio 3:1. The stock closed 14.63% or 129 points higher at 1011 level on the BSE. The stock which opened with a gain of 20% at 1,058.60 level hit an intra day low of 990 level on BSE.

The glassware maker's stock has gained 28% or nearly 300 points during the last nine trading sessions. On June 6, 2018, the firm's stock fell to its 52-week low of 761.60 level on the BSE.

The stock has gained 11.38% during the last one year and rose 3.18% since the beginning of this year.

Its board also cleared amalgamation of Vyline Glass Works, Fennel Investment and Finance, Gujarat Borosil with the company, which will then be renamed as Borosil Renewables.

The company also approved demerger of its scientific and industrial products and consumer products business.

The firm said proposed restructuring will result in simplification of the group structure by eliminating cross holdings; confer shares in each business to each existing shareholder of all the companies thereby giving them an opportunity to participate in both the businesses that is scientific & industrial products and consumer products businesses of Borosil Glass Works and solar business of Gujarat Borosil.

The restructuring will result in economies in business operations, provide optimal utilization of resources and greater administrative efficiencies.

Borosil Glass Works is a holding company, which manufactures scientific ware items and consumer ware items. The company's segments include scientificware, consumerware, flat glass and others.

The scientificware segment includes items used in laboratories and scientific ware, such as laboratory glassware, instruments, disposable plastics and liquid handling systems.

Its Consumerware segment includes items for domestic use, including microwavables, such as dishes, bowl and plates, combination sets and mixing bowls, and appliances, such as induction cookers, sandwich makers, toasters, electric kettles and rice cookers.

The Flat Glass segment is engaged in the manufacturing of flat glass. Its others segment includes items for industrial use, miscellaneous trading items and solar water heating system. It markets glassware, including a range of scientific, industrial and pharmaceutical glass items sourced both from international and domestic markets. Its brand includes Borosil.