India Battery plant Article Nov.23, 2007rs 200 croer is equivalent to $50 million.
YObykes maker may offload stake to Lehman
AHMEDABAD: YObykes maker Electrotherm India Ltd is planning to raise Rs 200 crore through a private placement to global financial institutions Lehman Brothers and DZ Bank of Germany.
The funds will be used to part-finance the company’s capital expenditure plan of Rs 600 crore for forward and backward integration over the next couple of years. Company officials were not willing to divulge the price at which these placements were to be made.
A captive power plant of 50 MW is being set up at its Kutch facilities at an investment of Rs 170 crore. It is also putting up a captive sponge iron plant.
Electrotherm will invest around Rs 200 crore in next couple of years in a joint-venture with Canadian company Electrovaya. The JV will make lithium ion polymer batteries in Gujarat which would be exported as well used in the company’s hybrid bus manufacturing where the prototype is ready.
“Raising funds for our capital expenditure plans will not be a problem,” said Naveen Nakra, director-finance at Electrotherm. The company has already raised Rs 80 crore from ICICI Venture Funds and Rs 100 crore from International Finance Corporation.
These two placements were made at Rs 600 per share. The current market price of Electrotherm is just under Rs 600.
The remaining funds required for its capex will come from promoters, around Rs 100 crore through term loans and internal accruals. Out of the Rs 600 crore planned capex, the company is planning to spend around Rs 300 crore in the current year.
In the current financial year, the company is looking at a turnover of Rs 1,200 crore and profits in excess of Rs 60 crore as against Rs 730 crore and Rs 43 crore respectively during last fiscal.
The furnace and engineering division is likely to contribute around Rs 350 crore, steel division Rs 750 crore while electric vehicles may contribute around Rs 100 crore. It expects further increase in profit margins with its new electronic-bike ‘YoSpeed’. The company is targeting to sell around one lakh ‘YoSpeed’ within a year from its launch.
The company has already spent Rs 8 crore on advertisements last year and is planning to spend another Rs 15 crore.