'Subscribe' to Indosolar IPO: India Capital Markets

MUMBAI: India Capital Market has recommended investors to subscribe to initial public offering ( IPO) of Indosolar.

“The company does not have historical operational record as it has been incorporated in the year 2009 but the company has robust order book which provides decent revenue visibility for the next one year.

We believe that the government’s emphasis to boost up solar power generation through its Jawaharlal Nehru National Solar Mission scheme will also help to generate demand for the company’s product in the future.

We recommend SUBSCRIBE to the issue with the long term positive outlook on the power sector and on the company,” the report said.

The company entered the capital markets Monday to raise Rs 375 crore by issuing shares in the price band of Rs 29-32. The issue closes Wednesday.

The IPO proceeds will be used to finance the expansion of its manufacturing facilities from 160 mw to 260 mw.

Indosolar manufactures poly-crystalline solar photo-voltaic (SPV) cells from silicon wafers. It markets and sells products primarily to module manufacturers on a business-to-business platform.