Solar photo-voltaic cells maker Indosolar Ltd plans to come out with an initial public offer for raising Rs 400 crore to fund its proposed expansion project.
The Delhi-based company has filed its draft red herring prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (Sebi) last week for this purpose.
Proceeds from the initial public offer (IPO) would be used to partly finance the expansion of its annual manufacturing capacity for solar photo-voltaic (SPV) cells and for general corporate purposes.
According to the draft paper, the company plans to set-up a 100-MW line (Line 3) at an estimated cost of Rs 360 crore.
It is expected to be completed in February 2011 and the firm hopes to start commercial production from April.
"We want to expand our existing manufacturing capacities to increase our production capabilities and meet demand for our products in future," the company said.
Indosolar's production unit for SPV cells in Greater Noida has one cell making line with an annual capacity of 80MW. "We intend to increase our annual production capacity to approximately 260 MW by April 2011," Indosolar said in DRHP.
The company is also considering private placement of shares (pre-IPO placement) aggregating up to Rs 125 crore, according to the DRHP.
Enam Securities is the sole book running lead manager to the issue.
Shares offered through the IPO are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange.
