Date:01/11/2007 URL: http://www.thehindubusinessline.com/2007/11/01/stories/2007110152011600.htm

Back Merrill Lynch invests $17 m in Webel-SL

Funds to be used for capex plans

Jayanta Mallick

Kolkata, Oct 31 Merrill Lynch has picked up FCCBs worth $16.8 million in Kolkata-located Webel-Sl Energy Systems, a listed Rs 107-crore photovoltaic cells and modules manufacturer-exporter.

Sources close to the development told Business Line that Merrill Lynch International last week paid upfront a premium of Rs 540 per share.

The Webel-SL counter on the BSE closed at Rs 460 on Wednesday. The stock price has been on the decline throughout October. In the past one month, the BSE Small Cap stock has declined by 11.5 per cent.

Capacity expansion

Money collected through these FCCBs and the GDRs in August would be utilised for capacity expansion.

The capacity is being raised to 42 MW from the current 10 MW per annum. The company has also recently issued GDRs worth a little over $13 million. GDRs have been listed on Singapore Stock Exchange.

Webel-Sl is also forming a joint venture with Micro Power Trading Co Pte Ltd of Singapore for sourcing of silicon ingots and setting up a slicing plant for the manufacture of silicon wafers, the main ingredient for making solar cells.

In August, after merger of nine promoters-controlled companies, which were not shown earlier as part of the promoter group, the shareholding of SL Industries Ltd now stands increased to 40.98 per cent from 9.52 per cent as on March this year. As a result, promoter group holding has also shot up to 41.05 per cent against 9.57 per cent, according to last shareholding statement by the company till March 31, 2007. The paid-up share capital of Rs 6.51 crore, however, remains unchanged.