NEW DELHI -(Dow Jones)- Indosolar Ltd., which makes solar photo-voltaic cells, plans to raise INR4 billion ($89 million) via an initial share sale in July as it aims to ramp up capacity to capture the growing Indian market for solar cells, a senior company official said Monday.
New-Delhi based Indosolar currently has capacity to make solar photovoltaic cells that can produce 160 megawatts of electricity. It aims to increase annual manufacturing capacity to 260 MW by 2011 at an investment of INR3.6 billion, the company’s Managing Director Hulas Rahul Gupta told reporters.
…..Indosolar, which had an order book of INR4.54 billion at the end of 2009, is negotiating silicon contracts with suppliers to meet its manufacturing capacity and to ensure sufficient inventory levels in the future, Gupta said. This will help it boost margins.
CRISIL has assigned IPO grade “3/5” to the proposed initial public offer of Indosolar Ltd, which indicates that the fundamentals of the issue are average relative to other listed equities.
Indosolar has a strong promoter background who in their earlier avatar had built the Halonix brand and subsequently sold their stake to PE firm Actis.
Indosolar is currently the largest solar cell maker in India with a current capacity 160Mw and intends to expand it to 260MW by 2011. Established players like Tata-BP solar and Moser Baer have a current capacity of about 84MW and 90MW respectively.