Monday, September 13, 2010

Indo Solar IPO at 29-32 band and 10 paidup.....excellent IPO to apply for....

CRISIL has assigned a CRISIL IPO grade of 3/5 to the proposed initial public offer (IPO) of Indosolar, in its report dated March 18, 2010.

"This grade indicates that the fundamentals of the IPO are average relative to other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy/sell or hold the graded instrument, or a comment on the graded instrument’s future market price or its suitability for a particular investor," according to report.
The report says, "The grading assigned reflects CRISIL’s view that the depleting energy reserves and the consensus among various nations to cut emissions and focus on an alternative clean source of energy is positive for the solar industry. The grading also reflects the strong track record of the promoters with respect to their previous technology-intensive venture at Halonix (Earlier Phoenix Lamps). However, the grading is tempered by the fact that the technology for manufacturing SPV (solar photo voltaic) cells is still evolving and, therefore, carries the risk of obsolescence for existing players including Indosolar. The company also has no prior experience in the solar PV cells business and is expected to face competition from large and established players."
"Indosolar is engaged in the manufacturing of SPV cells from crystalline silicon wafers, used for converting sunlight directly into electricity. It is looking at expanding its manufacturing capacity further. Expansion through Line 2 with an annual capacity of 80 MW is under progress and is expected to be commissioned by March 2010. The company has incurred a capital expenditure of Rs 6,670 mn for Line 1 and Line 2, funded through a mix of debt (of Rs 4,600 mn) and equity contribution from the promoters," according to CRISIL report.
The report also says, "The company plans to raise around Rs 4,000 million through the IPO mainly to fund the expansion of Line 3 which would have an annual manufacturing capacity of 100 MW. As on January 5, 2010 the company has a strong order book of 78.08 MW with a contract value of Rs 5,063.9 million."

My Comments:
Crisil has given 3/5.So it is not negative.I have highlighted in blue colors why it is rated low....
But the silverlining here is , it is coming from Enam Sec.The issue is managed by Enam Sec.
Moreover , they have 506 cr order ready to execute.
They are using the funds for expanding the capacities......That is another thing I like....
So anyone interested in Solar Power , then they need to apply for this IPO which is in a very reasonable price band and 10 paidup too....I like it....anything with 10 FV, I have liking....


In today's Livemint internet edition I read that the latest order book position of Indo Solar is Rs 1011.92 cr as on July 31 2010.That means that they have doubled the order book position in last 6 months.
I also read that PV cells they produce gives high efficiancy of 16.15%.
open the link and have a look at the IPO Co which you will be applying for.....better option then XL Tele?Yes, I think so.......


  1. Dear Rajeevji

    Hope you are having great time ther.
    I was tracking electrotherm india for last 4years, eventhough they are anouncing great results all these 4years,the price movment has been minimal.PE 7.27, Mcap 368cr sales of 624 in last qtr. promotor and fii hold 46%. Recently company take over Hans ispat Ltd and and Shree Hans Papers Ltd.

    What is your opinion about electrotherm


    Vishnu R Nair

  2. Rajiv bhai
    next year chances are end of rule cpm in west near 2012 price of real estate fire in west bengal.
    nobody beat you in knowledge by grace of GOD so please sujjest some company name of bengal base who hold large land bank like BATA,HIND MOTER etc.
    one hindi kahawat is
    jo chirya sabse pehle jagti hai wohi sabse achha dana pati hai
    thanks in advance