Wednesday, September 15, 2010

Indosolar IPO almost fully subscribed hours before close

SOURCE: PTI Sep 15 2010 , New Delhi




Solar power equipment manufacturer Indosolar Ltd's Rs 357 crore initial public offer has been almost fully subscribed, hours before it closes today.

The issue has received bids for over 11 crore shares against the 12.31 crore equities on offer, thus getting subscribed 0.9 per cent, as per the latest data from the National Stock Exchange.

The company has entered the capital market with the aim of raising Rs 357 crore and has fixed the IPO price band at Rs 29 to Rs 32 per share. The issue, which opened on September 13, closes this evening.

The Noida-based entity is engaged in the manufacture of polycrystalline solar photo voltaic (SPV) cells from silicon wafers, which are used for converting sunlight directly into electricity through a process known as the photo-voltaic effect.

At present, the company has two SPV cell manufacturing lines with an aggregate annual manufacturing capacity of 160 MW.

Under the government's Special Incentive Package Scheme, the company is entitled to receive a 25 per cent capital subsidy on its investments.

It was granted in-principal approval for garnering the subsidy benefit in June last year by the Indian Ministry of Communication and Information Technology and submitted a formal application in March this year.

In addition, the company's manufacturing facility in Greater Noida has been granted 'Export-Oriented Unit' status and is eligible to enjoy certain benefits.

Enam Securities is the sole book running lead manager to the issue

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