Sharp Business Systems India Limited (SBSIL), the Indian arm of Japanese consumer electronics major Sharp, is working out various options to raise capital to finance its aggressive expansion plans in the domestic market.
SBSIL is mulling options such as approaching investment bankers, private equity players and even coming out with public offerings to finance the capital requirements for its proposed refrigerator plant, scaling up the inverter AC manufacturing plant and re-launching its microwave ovens.
“We have to show quick turnaround and success and improve the bottom line, given the difficulties faced in obtaining initial funding for our plans,” Sharp India region chief executive officer and managing director Sunil K. Sinha told The Hindu .
Mr. Sinha said the Indian subsidiary had written to SEBI for off-loading five per cent of stake in line with the domestic market stipulation that parent companies based abroad could not hold more than 75 per cent stake. Negotiations were underway with prospective buyers through block deal and the SEBI’s approval would be sought once the deal was finalised. While the company would invest Rs. 272 crore in its inverter AC manufacturing plant, a feasibility study for the microwave manufacturing facility was underway. “We will require close to Rs. 450 crore for the refrigerator facility. The product is lined up for release next year,” he said.
to raise capital needed to build
and scale up