- IPO opens on September 22, 2009 with price band of Rs 70-75
- To set-up Rs. 178.03 crore plant in SEZ in Kutch
Seeking to diversify into solar energy space, India’s 2nd largest manufacturer of CDRs and DVDRs Euro Multivision Ltd will enter the capital market with its IPO of 8.8 million equity shares of Rs 10 each, with a price band of Rs 70-75, on September 22, 2009. The issue, which closes on September 24, 2009 is on a 100% book building process.
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 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 178.03 crores, will have a capacity of 40MW per year.
“This new field of business is synergistic with Company’s existing businesses and we will leverage on our core competencies in the areas of precision high technology, mass manufacturing, and project management,” said Mr Hitesh Shah, MD, Euro Multivision Limited.
“As one of the early entrants in this space, EML is well-positioned to leverage this growing business opportunity. EML is targeting one segment in the PV value chain that is most attractive from a synergy standpoint, since it leverages the company’s manufacturing competencies,” Mr Shah added.
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.
As regards to the Plant & Machinery required for the proposed photovoltaic unit, the Company has a contract with OTB Solar B.V (The Netherlands), for selling and designing, delivering, installing, testing, and mechanically commissioning the Solar Cell Production Line at a fixed price of EURO 13,220,000.
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.
Apart from reducing India’s dependence on imported fuels and the strain on the environment, some forms of renewable energy such as biomass power production and ethanol motor fuel offer the added advantage of potentially creating millions of rural employment opportunities and contributing to higher rural incomes, rather than higher outflows of foreign exchange. Tapping this potential will require conducive national policies and programmes designed to attract active participation from the private sector.
Energy is an essential building block of economic as well as overall development of the country. In an effort to meet the demands of a developing nation, the Indian energy sector has witnessed a rapid growth. Areas like the resource exploration and exploitation, capacity additions, and energy sector reforms have been revolutionized. However, resource augmentation and growth in energy supply have faced difficulties to meet the ever-increasing demands exerted by the multiplying population, rapid urbanization and progressing economy. Hence, serious energy shortages continue to plague India.
India's energy requirements are enormous and the demand is growing but our resources are limited both in physical and financial terms. It is a long term imperative that these resources are exploited optimally. India is attracting significant attention from major overseas project developers, equipment suppliers and financiers. However, there remain difficult issues to be resolved before these projects become a reality. (Source: http://www.bharatbook.com/India-Energy-Summit-2007.asp)
One of the possible solutions to this problem is Solar Energy. India receives solar energy equivalent to over 5,000 trillion kWh per year. The daily average solar energy incident varies from 4 -7 kWh per square meter depending upon the location. The annual average global solar radiation on horizontal surface, incident over India is about 5.5 kWh per square meter per day.
In India Solar Photovoltaic which is one form of Solar Energy comes under the Ministry of Renewable Energy. As per official records, the annual turnover of the Renewable Energy Industry in the country, including the power generating technologies for Wind and other sources, has reached a level of over Rs. 30,000 million.
About Euromultivision Limited:
Euro Muiltivision Limited, part of EURO group promoted by Mr Nensi Shah, has emerged as the second largest company manufacturing CDRs and DVDRs (Source: Optical Disk Manufacturers Welfare Association). EURO group, started in 1995, that has presence across multi products such as Vitrified & Ceramic Tiles, Agglomerated Marble, Aluminium Section, Aluminium Composite Panels (Bond), Hardware & Sanitary ware Fittings, Plywood, Veneers, Laminates, Mica, Canfor, Imported Furniture, Sponge Iron, CDR, DVDR, Glass Articles, Dry Battery Cell and Wooden Flooring and spread over various parts of India.
Euro Multivision limited was incorporated on April 29, 2004 and has set up a plant for the manufacture of Compact Disc Recordables (CDRs) and Digital Versatile Disc Recordables (DVDRs). It has commenced commercial production in April, 2005 with five manufacturing lines having an installed capacity of 720 lac units of CDRs and 72 lac units of DVDRs a year. After successfully operating five lines in the first year of its commercial operation, the company expanded the capacity by adding another five manufacturing lines in the second half of financial year 2006-07 taking the total to 10 manufacturing lines with a total installed capacity of CDRs to 1800 lac units a year. These lines are interchangeable and are convertible to manufacture DVDR as and when the requirement arises. Also these lines are compatible for manufacturing of pre recorded CD’s and DVD’s. In the same financial year, the DVDR manufacturing line was converted into CDR manufacturing line. The CDR production is fully stabilized and is operating on full capacity.
Our manufacturing facility is situated at Taluka Bhachau, District- Kutch, Gujarat. Our manufacturing facility is fully automated with least human intervention, which ensures international quality standards with optimum utilization of installed capacities. The major parts of the said manufacturing facility are procured from VDL ODMS B.V, Netherlands which is one of the leading suppliers for CDR manufacturing technology. Further, our manufacturing facility operates in Class 10000 (class 10,000 clean rooms, which enable us to produce clean, sterile, aseptic and dust-free products and components) environment and is completely powered by our Captive power plant for uninterrupted power supply.
Disclaimer: Euro Multivision Limited (“Company”) proposes, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a Red Herring Prospectus with the Registrar of Companies, Mumbai. The Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in as well as on the website of the BRLM, Anand Rathi Advisors Limited at www.rathi.com. Any potential investor should note that investment in equity shares involves a high degree of risk. For details, potential investors should refer to the Red Herring Prospectus, which has been filed with the Registrar of Companies including the section titled "Risk Factors". Potential investors should not rely on the Draft Red Herring Prospectus filed with SEBI
