Indosolar fixes IPO band at Rs 29-32

Indosolar Ltd,on Wednesday,said it had fixed a price band of 29-32 rupees per share.

Indosolar Ltd,a solar photo-voltaic cellmaker,on Wednesday said it had fixed a price band of 29-32 rupees per share for its initial public offering (IPO) to raise 3.57 billion rupees.

The IPO will open on Sept 13 and close on Sept 15,it said in a statement.

Indosolar intends to use the proceeds to scale up solar cell manufacturing capacity up to 260 MW by 2011 from the present 160 MW,Managing Director H R Gupta told reporters.

The company,which has a current orderbook of 10.12 billion rupees from solar panel- and module-makers from 9 countries,expects the federal government’s Jawaharlal Nehru National Solar Mission to boost domestically-manufactured solar cells demand from this year onwards.

Under the scheme,the government aims to generate 20,000 MW of solar power by 2022 from the present under-10 MW. To avail of the benefits under the mission,solar power firms are required to source solar cells from domestic manufacturers.

Indosolar has long-term debt of 4.6 billion rupees,and would be entitled to get a capital subsidy of 2.5 billion rupees under the government’s semi-conductor policy. We will be entitled for a 250-crore capital subsidy under semi-conductor policy of the Government of India,as we will cross the capital threshold of 1,000 crore (10 billion rupees,after the IPO,he said.

The company does not intend to raise funds from anchor investors as part of the IPO,he added.

Enam Securities is manager for the IPO.