XL Telecom to enter capital markets

Hyderabad-based XL Telecom Ltd, with diversified business interest in telecom and energy, will enter the capital market to part finance expansion of its mobile handset assembly line and module making capacity of solar photovoltaic division.

The public issue of 39,56,808 equity shares would open on December 4 and close on December 7. The company has fixed a price band of Rs 125 to Rs 150 per equity shares to be decided through book building.

"With an installed capacity of over three million handsets per annum, XL Telecom is the only independent assembler of CDMA phones," Company Managing Director Dinesh Kumar told reporters in Mumbai.

He said company intends to spend Rs 20 crore (Rs 200 million) in setting up Surface Mounting Technology Lines to produce the PCBs used in mobile phones.

Also, Rs 8 crore (Rs 80 million) would be spent in expanding the module making capacity of Solar Photovoltaic Division. The remaining proceeds would be spent on repayment of term loan and working capital requirements, he said.

The company is currently looking at the demand in Germany, Spain and other parts of Europe for SPV Systems. With expansion, its capacity would increase to manufacture 160-210 Wp modules with an annual capacity of 24 Mw.

Further, XL Telecom has established a manufacturing facility for ethanol at Nanded in Maharashtra and is one of the leading licenced producer of ethanol in the country.

It began supplies this year and has surpassed targeted projections in the financial year ending 2005-06, the company MD said.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group