Shares of Borosil Renewables Ltd rose 4.5% to hit a day’s high of Rs 526.95 on 7th July, after its German subsidiary, GMB Glasmanufaktur Brandenburg GmbH (GMB), filed for bankruptcy in a German insolvency court.

The German subsidiary of Borosil Renewables had shut down its furnace in January this year due to weak demand and tough market conditions in the EU. The company had blamed cheaper Chinese solar panel imports for the drop in demand. It also stated that it had requested support from authorities, but no assistance was forthcoming.

What does this mean for Borosil Renewables?

The company had an exposure of about Rs 350 crore to the German unit. With the bankruptcy, the monthly cash loss of around Rs 9 crore will now cease. An administrator will take over the German subsidiary’s expenses and cash flow. In FY25, the subsidiary had revenue of Rs 327 crore — nearly 22% of Borosil’s total revenue — but it continued to post losses.

At 10:59 AM, the shares of Borosil Renewables were trading 4.29% higher at Rs 518.45 on NSE.

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