Moser Baer to raise Rs400 crore private equity to fund its photovoltaic unit to raise capacity to 500 MW

Moser Baer, India''s largest optical storage maker, has received its board''s approval to raise about Rs400 crore ($100 million) in its wholly-owned photovoltaic subsidiary to partially finance its plan to increase capacity to 500 MW by 2010.

The investment will be made by a consortium of investors led by IDFC Private Equity, together with GIC Special Investments, CDC Group plc (a UK government-owned emerging markets fund of funds) and Infrastructure Development Finance Company (IDFC).

The company said its subsidiary would use the proceeds to part-finance its plans to increase capacity to 500 MW by 2010, making it one of the largest players in the global photovoltaic industry.

The transaction will result in the photovoltaic subsidiary being listed on an "international exchange of repute", the company''s release said. Executive director Ratul Puri said that the deal has set a minimum threshold valuation for the photovoltaic business at $1 billion.

The company''s photovoltaic manufacturing facility for crystalline silicon, concentrator and thin film technologies is coming up in one of India''s first renewable special economic zones (SEZs) in Greater Noida.