Indosolar IPO oversubscribed 1.4 times; good demand from retail

NEW DELHI: The initial public offer of solar power equipment maker Indosolar got oversubscribed 1.48 times at the end of issue on Wednesday, with a good demand from the retail buyers.

The issue, through which the Noida-based entity wants to raise Rs 357 crore, got total bids for over 18.2 crore shares against 12.31 crore equities on offer, thus getting subscribed 1.48 times, as per the latest data avilable with the National Stock Exchange.

The company has entered the capital market with its IPO priced in the range of Rs 29 to Rs 32 a piece. The offer opened on September 13.

The issue garnered good response from retail investors and was oversubscribed 1.69 times in the portion reserved for them, merchant banking sources told PTI.

In qualified institutional buyers category, the issue got demand for 1.5 times and in high networth individuals category 1.44 times, sources said.

The Noida-based entity is engaged in the manufacture of polycrystalline solar photo voltaic (SPV) cells from silicon wafers, which are used for converting sunlight directly into electricity through a process known as the photo-voltaic effect.

At present, the company has two SPV cell manufacturing lines with an aggregate annual manufacturing capacity of 160 MW.

Under the government's Special Incentive Package Scheme, the company is entitled to receive a 25 per cent capital subsidy on its investments.

It was granted in-principal approval for garnering the subsidy benefit in June last year by the Indian Ministry of Communication and Information Technology and submitted a formal application in March this year.

In addition, the company's manufacturing facility in Greater Noida has been granted 'Export-Oriented Unit' status and is eligible to enjoy certain benefits.

Enam Securities is the sole book running lead manager to the issue.