Webel SL Energy plans rights issue to expand capacity

Webel SL Energy Systems Ltd, the solar lighting equipment manufacturer, controlled by city based S L Agarwal group, is coming out with a rights issue to fund capacity expansion at its Salt Lake plant.

The company is optimistic to double its turnover in 2004-05 following the expansion which would push up its capacity by 30 per cent.

S L Agarwal group took over the company from West Bengal government earlier this year. It was floated as a three-way joint venture among West Bengal government, SL Industry and Helisons Technology of Italy. West Bengal government used to hold 50 per cent in the outfit through WBIDC.

S L Agarwal now holds around 42 per cent in the outfit with person acting in concert and public holding is around 25 per cent. Webel SL Energy Script is hovering at around Rs 38-39 and reached 42 weeks high at Rs 40 in January 5.

Vijay Ajitsaria, general manager, finance, Webel SL Energy, informed that the company would raise around Rs 3.3 crore through an 'at par' rights issue.

"We are not charging any premium to reward the shareholders as the company has not paid any dividend for last couple of years.

The entire amount will be spend to enhance the combined generation capacity of our equipment per year from 7 MW to 10 MW. This would help us to make further inroads into export market where we already have strong presence," he said.

According him, Webel SL Energy is now exporting 95 per cent of its annual production. It is exporting solar equipment in countries like USA, UK, Germany, Australia etc. Ajitsaria claimed that the company has made a headway in 2004-05 as its turnover in first half has grown by almost 100 per cent compared to last fiscal.

The company has achieved Rs 27.5 crore turnover in first half of 2004-05 compared to Rs 27 for the entire 2003-04.

"We are optimistic to register Rs 55 crore in 2004-05, which is a good achievement. Our target for 2005-06 is Rs 80 crore," added him.

Ajitsaria also said that the company has wiped out all the accumulated losses in 2003-04 and now looking for a healthy bottomline with a clean balance sheet. It has posted a net profit of Rs 2 crore in first half of 2004-05.