Indosolar Limited (the “Company” or “the Issuer”), a manufacturer of poly-crystalline solar photo-voltaic (“SPV”) cells, is entering the capital market on September 13, 2010, with a public issue of equity shares of Rs. 10 each (“Equity Shares”) for cash at a price (including a premium to be determined through a 100% Book Building Process) aggregating up to Rs. 357 crore (the “Issue”). The Price Band has been fixed between Rs. 29 and Rs. 32 per equity share. The Issue will close on September 15, 2010.
The Issue is being made through the 100% Book Building Process wherein at least 50% of the Issue will be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs” and such portion the “QIB Portion), provided that the Company may allocate up to 30% of the QIB Portion, to Anchor Investors, on a discretionary basis (the “Anchor Investor Portion) out of which at least one-third will be available for allocation to domestic Mutual Funds only. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 15% of the Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Any Bidder may participate in this Issue through the ASBA (Application Supported by Blocked Amount) process by providing the details of their respective bank accounts in which the corresponding Bid amounts will be blocked by Self Certified Syndicate Banks (“SCSBs”).
The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the Bombay Stock Exchange Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).
The Book Running Lead Manager (BRLM) is Enam Securities Private Limited.
Indosolar Ltd manufactures poly-crystalline solar photo-voltaic (“SPV”) cells from silicon wafers utilizing crystalline silicon SPV cell technology for converting sunlight directly into electricity through a process known as the “photo-voltaic effect”. It markets and sells products to primarily module manufacturers on a business-to-business (“B2B”) platform , who in turn supply to the system integrators who install the systems for grid and off-grid (roof top) applications for use in the domestic market as well as markets in Europe, Spain, Japan, Asia, Canada and USA. It has established two SPV cell manufacturing lines having an aggregate annual manufacturing capacity of 160 MW. In order to prepare for an increase in demand for SPV products in the future and to enhance scale to a competitive level, it plans to increase annual manufacturing capacity to approximately 260 MW by 2011, with one additional manufacturing line of annual manufacturing capacity of 100 MW. It uses a fully automated horizontal in-line, state-of-the-art technology for manufacture of SPV cells which offer high average efficiency levels of up to 16.15%. It has entered into arrangements with Schmid Technology Systems GmbH (“Schmid”), one of the operators in SPV cell manufacturing technology and a vertically integrated player in the SPV cell industry, for delivery, installation and commissioning of the plant and machinery at its facility, on a turnkey basis.
Disclaimer
Indosolar Limited is proposing, subject to market conditions and other considerations, to make a public issue of securities and has filed a Red Herring Prospectus (“RHP”) with the and the Registrar of Companies, National Capital Territory of Delhi and Haryana. The RHP is available on the website of the Securities and Exchange Board of India at www.sebi.gov.in as well as on the websites of the book running lead manager at www.enam.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” of the RHP.”
The Equity Shares have not been and will not be registered under the US Securities Act of 1933 (the “Securities Act”) or any state securities laws in the United States and are being offered or sold only outside the United States to certain persons in offshore transactions in compliance with Regulation S under the Securities Act.
The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.
