The IPO of India’s 2nd largest manufacturer of CDRs and DVDRs Euro Multivision Ltd that planned foray into solar energy space was subscribed 1.81 times till 5 PM today, the last day of the issue.
The Non-institutional portion was subscribed 3.77 times and the QIB 1.23 times. The retail segment was also oversubscribed at 1.83 times.
The company entered the capital market two days ago with its IPO of 8.8 million equity shares of Rs 10 each, with a price band of Rs 70-75 and on a 100% book building process.
The main purpose of the IPO is to raise resources for the company’s photovoltaic solar cell manufacturing unit in an SEZ at Bhachau in Gujarat’s Kutch district. The plant, being built at a cost of Rs 176.56 crores, will have a capacity of 40MW per year.
Of the 8.8 million shares, equity shares up to 200,000 will be reserved for the company’s employees. The net issue will constitute 36.97% of the company’s post issue paid up capital. Anand Rathi Advisors Limited are the book running lead managers.
The company has already acquired 28.75 acres of land for setting up the SEZ adjacent to the existing manufacturing unit at Bhachau, District- Kutch, Gujarat. The Company has also received its SEZ Notification on April 23, 2009 and the same was published in the Gazette of India.
The company’s diversification comes in the backdrop of increasing awareness about and reliance on renewable sources of energy, including solar photovoltaic, solar thermal, small hydro and biomass power. Under the BAU (Business As Usual) scenario the contribution of renewable forms of energy is expected to be quite modest, but a concerted effort to implement a more visionary plan could significantly alter this outcome.