Global investors to invest Rs.4.11 bn in Moser Baer unit (Lead)September 4th, 2008 - 6:35 pm ICT by IANS
New Delhi, Sep 4 (IANS) Technology leader Moser Baer India Ltd Thursday said its wholly-owned photovoltaic (PV) subsidiary has entered into definitive agreement with a consortium of global investors to raise Rs.4.11 billion for its expansion.The global investors include Nomura, CDC Group, Credit Suisse, Morgan Stanley, IDFC Pe and IDFC.
“Moser Baer plans to use the funds to expand capacity of crystalline silicon and thin film solar vertical,” Moser Baer group chief financial officer Yogesh B. Mathur told reporters.
The transaction values of Moser Baer’s PV business is at $1.44 billion (Rs.6,350 crore or Rs.635 billion)), Mathur added.
The company plans to use the capital infusion to the capacity expansion of its high efficiency crystalline silicon and thin film solar verticals. It currently has an annual capacity of 120 MW, including 40 MW of amorphous silicon film modules.
The New Delhi-based company had raised Rs.4 billion (Rs.400 crore or $100 million) through private equity funding last November and with the current dilution (6.5 percent of the company is being diluted to raise Rs.4.11 billion), the company stands to have a total of Rs.8.11 billion (Rs.811 crore) of private funding.
Out of this, the company has earmarked $400 million as capital expenditure for its expansion plans.
Mathur said the company will infuse funds to ramp up the production in Greater Noida plant and has also acquired land in Chennai, which will achieve 500 MW proposed annualised capacity by 2011.
The Chennai and the Greater Noida plants will manufacture Gen 8.5 thin film panels measuring 5.72 square metres.
Driven by recent significant technological advancements, it is estimated that the solar market will have a 43 percent compounded annual growth rate and is poised to achieve grid parity in the short to medium term.
Current demand projections translate to a market value of $50-70 billion by 2010. Solar market has grown from $13 billion in 2005 to an estimated $ 40 billion this year.
Moreover, the growing demand in developing countries like India and South Korea will further drive the market up.