Business Daily from THE HINDU group of publications
Friday, Aug 17, 2007
ePaper
Business Daily from THE HINDU group of publications Friday, Aug 17, 2007 ePaper |
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Info-Tech
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Telecommunications XL Telecom firms up Rs 300-cr expansion plan
Project includes hiking capacity of the Solar Photovoltaic Module-making plant
Our Bureau Hyderabad, Aug. 16 XL Telecom & Energy Ltd has firmed up plans to invest up to $75 million (around Rs 300 crore) in the company’s expansion-cum-backward integration plan, including setting up of a 100 per cent export oriented unit. This decision follows a meeting of the company board here on Thursday. “Of the Rs 300-crore investment plan, Rs 45-50 crore would be deployed into the solar module unit and the rest for the backward integration plant to manufacture cells,” the Managing Director of XL Telecom, Mr Dinesh Kumar, told Business Line. “We will be the first company in the country to go on stream, and expect the cell unit to be commissioned by April 2008,” he said. Raising capital
Of the Rs 300 crore, Rs 160 crore will be raised through FCCB (foreign currency convertible bond) issue and the rest through private equity and issue of up to 52,50,000 warrants to promoters and other investors. The company board has also authorised the management to borrow additional money from Indian Financial Institutions and banks by way of term loans up to Rs 140 crore. Mr Kumar said the expansion initiative was a recent development and was not conceived when the company went public late last year. The expansion model includes hiking capacity of the Solar Photovoltaic Module-making plant from the existing 25 MW to 65 MW, and establishing a Solar Photovoltaic Cell manufacturing plant with a capacity of 120 MW per annum. The company has decided to convene an Extraordinary General Meeting for getting approval for these decisions that would pave way for the company’s growth plans. The company had raised funds through initial public offer earlier to meet its expansion plans. However, it has stepped up its expansion and investment initiatives to meet the increasing demand.
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