Shapoorji Pallonji and Company Private Limited and Khurshed Daruvala, the promoters of Sterling and Wilson Solar Ltd, move to repay the outstanding loans owed to the company could pave the way for a stake sale.

The entire outstanding loan of ₹2,563 crore as on the date of listing of company’s equity shares on the stock exchanges along with all further interest accrued till date now stands repaid in full. Experts said that with the promoters clearing the dues, the company could be set for a stake sale as part of the SP Group’s overall debt reduction plan.

Covid impact

The money was supposed to be paid by November 2019, extended to June 30, 2020, but the promoters said that Covid-related lockdown had impacted their fund-raising plan. Earlier, the board of Sterling and Wilson Solar Ltd had given its nod to promoters for coming up with a revised schedule to repay an outstanding loan amount of ₹2,563 crore.

On June 25, 2020, BSR & Co, the auditors for Sterling and Wilson Solar had said the company has received queries from SEBI, Registrar of Companies, Mumbai (RoC) and certain shareholders regarding matters connected with delay in repayment of inter-corporate deposits by the promoters.

Sterling and Wilson Solar is the first company from the Shapoorji Pallonji stable that got listed in 2019. At the time of listing, the promoters were supposed to pay ₹2,563 crore to Sterling and Wilson Solar by November 18 (3 months after listing date).

Of this, ₹2,335 crore was the principal and ₹228 crore was interest. But the promoters, on November 14, wrote to the Sterling and Wilson’s Board saying that they seek a revised payment schedule.

While they paid ₹250 crore, for the remaining outstanding amount of ₹2,341 crore (principal amount of ₹2,085 Crore and interest of ₹256 crore) as on September 30, 2019, they stated that due to the significant and rapid deterioration in the credit markets, has created a significant liquidity crisis, all of which was unforeseeable.

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