Convergent Finance Invests ₹2 Billion in Solar Glassmaker Borosil Renewables

Convergent Finance LLP, a Maharashtra-based investment firm, announced it has invested ₹2 billion ($27.2 million) in solar glassmaker Borosil Renewables through a qualified institutions placement (QIP) of equity shares.

In a separate press statement, Borosil had announced that it had received funding through a QIP to expand its solar glass manufacturing operations. It plans to use these funds to meet its capital expenditure requirements for a brownfield expansion to double its solar glass production capacity from 450 tons per day to 950 tons per day, it said.

The glassmaker said it raised the funding by issuing 15,804,030 of its equity shares with a face value of ₹1 (~$0.014) each. The issue price for these shares is ₹126.55 (~$1.72) per equity share. It said this included a premium of ₹125.55 (~$1.71) per equity share and a 4.99% discount per share from the floor price of ₹133.19 (~$1.81) per equity share.

A qualified institution placement is a way for publicly traded companies, primarily in India and Southeast Asia, to raise capital without submitting legal paperwork to market regulators. The rule was created by the Securities and Exchange Board of India (SEBI) to help these companies avoid depending on foreign capital resources.


Qualified institutional buyers (QIBs) are the only entities allowed to purchase QIPs. QIBs can be institutional investors with the expertise and the financial strength to evaluate and invest in capital markets. These QIBs include mutual, provident, or pension funds, insurance companies, public financial institutions, and scheduled commercial banks.

Borosil said its Securities Issue Committee approved the issue and allotment of these shares on December 17, 2020. Following the QIP issue, the holding of the promoter and the promoter group would stand at 61.92%.

The Mumbai-based glass maker also noted that following the allotment of these shares, the issued, subscribed, and paid-up equity share capital of the company rose to ₹129.9 million (~$1.77 million), comprising 129,863,567 equity shares worth ₹1 (~$0.014) each from ₹114.05 million (~$1.55 million) comprising 114,059,537 equity shares, previously.

“We are overwhelmed with the response from the investors and thank them for showing confidence in the business and management team of Borosil Renewables. The funds raised through this QIP will help us undertake our planned expansion, and we are excited to capitalize on the business opportunity that our industry offers,” said Pradeep Kheruka, Executive Chairman of Borosil Renewables Limited.

According to Mercom’s 9M and Q3 Solar Funding and M&A Report, public market financing into the solar sector globally came to $1.3 billion in four deals in Q3 2020, 75% higher compared to $737 million raised in five deals in Q2 2020.

Last year, Mercom reported that India imposed an anti-dumping duty on the import of textured tempered coated and uncoated glass from Malaysia for five years, according to a notification released by the Ministry of Finance.  A recent report by SolarZoom highlighted the demand-supply gap in the Chinese solar module market due to the ongoing shortage of solar glass used in the manufacturing of solar modules.