The Hindu Business Line : XL Telecom to raise $40 m thru FCCB issue

Hyderabad, Sept. 3 XL Telecom & Energy Ltd has sewn up plans to raise $40 million (about Rs 160 crore) through FCCBs (foreign currency convertible bonds) by October to part finance its expansion and backward integration projects.

The company has outlined moves to invest Rs 305 crore in expansion that includes a greenfield project that covers a 120-MW Solar Cell manufacturing plant (Rs 265 crore) near the Fab City and Rs 40 crore for Solar Module unit of 65 MW.

The Managing Director of XL Telecom, Mr Dinesh Kumar, said the company has a comfortable order book of Rs 568 crore as of now across its lines of business, and this expansion-cum-diversification will help achieve revenues of Rs 650 crore during the current fiscal.

The company plans to invest up to Rs 1,100 crore over the next three years that will enable them to double the solar cell unit capacity to 240 MW and thereby accessing the Central Government concessionaire.

Addressing a press conference here, Mr Kumar said that the company was focusing on solar energy panels and telecom equipment.

It is in parleys with BSNL, Tata Teleservices, Reliance to offer wireless CDMA base sets.

“BSNL is in the process of inviting tenders for 2.5 million lines and XL Telecom has the potential to play a role in the tender. However, we do not want to get into highly competitive mobile handset market. We are already executing a Rs 65-crore order,” he said.

The company had tapped the market in December last with its maiden IPO.

For the year ended June 30, 2007, the company recorded revenues of Rs 524 crore with profit of Rs 20 crore against revenues of Rs 396 crore and profit of Rs 10.67 crore.

This reflects a growth of 32.53 per cent in revenues and 89.07 per cent in profit.

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