Issue Opens on: Monday – September 13, 2010
Issue Closes on: Wednesday – September 15, 2010
Bid Lot: 200 Equity Shares
Price Band: Rs.29 to Rs.32
No. of Shares: 11.16 – 12.31 crore shares
Issue size: Rs 357 crore
Issue highlights
- Indosolar Ltd. (ISL) is currently one of the leading manufacturers of poly-crystalline solar photo-voltaic (SPV) cells in India. Company has successfully doubled its manufacturing capacity from 80 MW in July 09 to 160 MW in Mar 10.
- ISL enjoys an early mover advantage in this niche space of solar energy. Thus, it will benefit from the growing demand, would be able to pre-empt competition and ride down the experience curve ahead of competitors.
- Company proposes to install a SPV manufacturing line with ‘selective emitter’ technology which will provide capability to produce improved SPV cells of higher average efficiency up to 17.2%. Consequently, this will reduce manufacturing costs and result in margin expansion.
- ISL is one of the six companies short listed for final approval for the “Special Incentive Package Scheme” by GoI. Moreover, ISL benefits from capital subsidy to the tune of 25% of eligible costs, certain direct and indirect tax exemptions and also can avail free importability. Thus, ISL is equipped with a slew of incentives and backed by GoI policies which will boost its top and bottom-line going forward.
- Strong order book aggregating Rs 1,011 cr ensures revenues for the next couple of years. Moreover, order book consist of 170 MW of SPV cells which would ensure over 100% capacity utilization considering their current capacity is for 160 MW and the additional capacity is expected in Oct 2011. ISL will achieve greater operational efficiency with higher capacity utilizations going forward.
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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