Borosil Renewables reallocates funds from equity, warrants issue

Borosil Renewables (BSE: BORORENEW) announced a restructuring of the utilization of proceeds from its preferential issue of equity shares and warrants. The decision follows undersubscription and non-participation by some proposed allottees. A significant change involves allocating zero rupees toward the repayment/prepayment of loans availed by the company, compared to the previously planned 15 crore rupees. The allocation for the satisfaction of the liability of the company arising from standby letter of credit remains unchanged at 185 crore rupees. Capital expenditure for expanding production capacity at its facility in Bharuch, Gujarat, will now receive 332.66 crore rupees, down from 375 crore rupees. The allocation for general corporate purposes is reduced to nil from the previous 125 crore rupees. The total planned utilization is revised to 517.66 crore rupees, down from 700 crore rupees. The company stated that this reduction is due to the ineligibility of two proposed allottees of warrants, amounting to 2.44 crore rupees, as per SEBI regulations.