Hyderabad-based Titan Energy Systems is likely to dilute 25 per cent of its stake for valuation during the third quarter of the next financial year.
“The company requires around Rs 50 crore. We are planning to further raise the money, and towards this may likely dilute 20-25 per cent of our stake,” Shankar Rao Chodagam, managing director of Titan Energy, told mediapersons here on Wednesday.
The company had recently raised Rs 30 crore equity from IFCI Venture Capital and Rs 32 crore debt. At present, 15 per cent stake is owned by IFCI Venture Capital, 10 per cent by a German company, and the rest by Titan Energy.
Titan Energy has plans to add 50 Mw capacity to its 100-Mw manufacturing plant at the Fab City in Hyderabad. “We are putting on hold the expansion plan for another six months as the current market condition is not-so-good,” he said.
All the major players in the solar photovoltaic modules space have kept their expansion plans on hold due to the Euro crisis last year. Some of them have also reduced production to one shift from the earlier three, he said.
“Titan Energy has also been affected due to the Euro crisis. As we are an export-oriented company, more than 70 per cent of our business has been affected,” he added.
The company used to export 90 per cent of its products to Germany, Spain and Italy. “Now, our business has picked up in the domestic market, while the exports took a back seat,” he said. The company’s order book currently stands at Rs 170 crore.
Titan Energy on Wednesday entered into a partnership with Norway-based Elkem Solar (research partner) and BV Raju Institute of Technology (academic partner) for long-term study of solar-grade silicon technology.