Webel SL Energy to raise Rs 45 crore via QIP

Webel SL Energy Systems is raising about Rs 45 crore through a qualified institutional placement (QIP) issue for long term working capital requirements, President - Finance R Sathyamurthy told CNBC-TV18. Part of the money would also be used for debt repayment and as growth capital, he said, adding that a major portion of the QIP would be used for expansion — a new project is being set up at Falta.

The promoter stake in the company before the issue was at 38.77% and it now stood at 30.81%

Here is a verbatim transcript of an exclusive interview with R Sathyamurthy on CNBC-TV18. Also watch the accompanying video. 

Q:  You raised about Rs 45 crore last week, what is this QIP money being raised for?

A: It’s basically to augment the long term working capital requirement.

Q: Any of it goes into the repayment of the Rs 130 crore debts you have?

A: A major portion of that is for our new project which is being set up at Falta, so debts have the repayment schedule of basically being the term loans which have separate repayment schedules, so this money might not be utilized for those purposes.

Q: Who did you make the placement to, who are the top three investors?

A: There are totally about five investors. The top one would be the India fund.

Q: The others?

A: There are various, totally there are five. There are about 2-3 lakh various people that have taken the shares, so the average would be roughly about the same quantum as the other people.

Q: How is your basic business of photovoltaic doing right now because some of your other peer companies globally too seem to have faced a lot of problems with this business over the last one year?

A: At present there is a global turmoil but the future is going to be exciting, the growth that was witnessed in the last few years may not be there this year. We have been very hopeful because the European market which was giving the growth but now the Asian markets would come into a big play, the Indian market is also providing an exciting opportunity for the future. Like any other business, there will be temporary hiccups here and there.