MUMBAI: Moser Baer India Ltd has received the approval of its board of directors to raise $ 100 million (Rs 400 crores) in its wholly owned photovoltaic subsidiary.

The investment will be made by a consortium of investors led by IDFC Private Equity, a private equity fund focused on the infrastructure space in India; together with GIC Special Investments, the private equity investment arm of GIC, a global investment management company established manage Singapore’s foreign reserves; CDC Group plc (the UK government owned emerging markets fund of funds investors and Infrastructure Development Finance Company (IDFC), India’s infrastructure development and finance company.

Moser Baer’s photovoltaic subsidiary will use the proceeds to partially finance its overall plans to increase capacity to 500 MW by 2010 – making it one of the largest players in the global photovoltaic industry in a short span of time. Additionally, the transaction will position the photovoltaic subsidiary for a listing on an international exchange.

Moser Baer executive director Ratul Puri said, “We are delighted to have respected and global private equity investors as our growth partners for the photovoltaic business. We are confident that Moser Baer will benefit from the international experience of these firms, their global network of professionals and relationships. This investment will enhance the speed of implementation of our plans to emerge as a leading technology driven company in the global photovoltaic space from a position of financial strength and create incremental value for our shareholders. While the photovoltaic business has recently commenced commercial operations, this innovative deal has set a minimum threshold valuation for the photovoltaic business at $ 1 billion.”

The company plans to emerge as a leading, global technology driven manufacturer by implementing a capacity of 500 MW by FY10 through a mix of technologies in the crystalline silicon, concentrator and thin film domain.