Borosil Demerger Record Date Today: Key Details Unveiled

Borosil Ltd has officially initiated its demerger process, Investors will closely watch the stock today as it begins trading ex-spin off, marking a pivotal moment for the company. The demerger focuses on creating two distinct entities—Borosil Ltd, which will retain its consumer business, and the newly formed Borosil Scientific Ltd.

Demerger Ratio and Record Date

The demerger comes with a specific ratio for eligible Borosil shareholders. For every four shares of Borosil Ltd held, shareholders will be awarded three shares of Borosil Scientific Ltd. The Board of Directors of Borosil Ltd has determined the crucial record date for this demerger as December 5, 2023. This date will be used to identify eligible shareholders entitled to the benefits of the Borosil demerger.

Background and Company Profile

Borosil Ltd, known for manufacturing consumer products, including microwave glass items, took this strategic step in February 2022, alongside the announcement of its Q3 earnings. The demerger aims to create a more streamlined structure, separating the consumer business from the scientific products division. The consumer business will continue under Borosil Ltd, while the new entity, Borosil Scientific Ltd, will be listed independently.

Financial Insights

In September 2023, Borosil Ltd. reported a notable financial performance across various metrics. Net sales increased by 11.31%, reaching ₹286.28 crores compared to ₹257.18 crores in September 2022. The net profit also saw a positive trend, rising to ₹28.25 crore, a 5.64% increase from ₹26.74 crore in the same period last year. EBITDA showed growth, reaching ₹52.97 crore, reflecting a 27.39% increase from ₹41.58 crore in September 2022. Borosil Ltd.'s earnings per share (EPS) witnessed an uptick, reaching ₹2.47 in September 2023, up from ₹2.34 in September 2022. These financial results suggest improving performance for Borosil Ltd. during this reporting period.

Stock Performance

Borosil's stock is currently up by 5%, but over the past year, it has seen a slight decline of about 5%. In the last six months, the stock has dropped by 8.50%. However, taking a broader view over the past five years, investors have enjoyed a 105% increase in the stock value, highlighting its long-term growth potential.

Final Words

Investors and industry observers keenly watch Borosil Ltd's journey post-demerger, anticipating how the two entities will fare independently. The demerger aims to unlock value for shareholders and enhance the focus and efficiency of each business segment.