Moser Baer’s photovoltaic unit to raise Rs 200 crore

NEW DELHI: New Delhi-based optical storage device maker Moser Baer India Ltd’s photovoltaic (PV) subsidiary, Moser Baer Photo Voltaic, will raise Rs 200 crore from a group of investors to fund the expansion of its solar business.

The company will use the convertible debt instruments to raise money and is likely to close the deal by March. “The deal should have happened by now, but due to the volatile market situation, I expect it to be completed by the end of this fiscal,” a source familiar with the developments told DNA Money.

The unit was earlier looking to dilute stake but with valuations at huge discounts now, changed its plans to convertible debt instruments that can be converted into equity when the markets improve. Company officials were not available for comment.

For this fiscal, Moser Baer had marked a capital expenditure of $400 million for its PV unit. Of this, it has already arranged about $350 million and the rest is to be raised subsequently.

In September, Moser Baer raised Rs 411 crore towards this capex by diluting 6.5% equity stake in the PV unit to a consortium of investors including Nomura, CDC Group, Credit Suisse, Morgan Stanley and IDFC.

The company will use the funds it will raise now to add 500 mw of thin-film capacity at its Chennai plant, which will become operational in 2009. At its Gurgaon facility, Moser Baer plans to add a capacity of 180 mw and ramp it up to 1 gigawatt by the end of 2010.

In the past, the photovoltaic unit has already raised Rs 400 crore through structured equity funding. It is using that amount to fund its current expansion plans.