Sterling & Wilson IPO opens on Aug 6

Our Bureau Mumbai | Updated on August 01, 2019

Price band fixed at ₹775-780 a share

Shapoorji Pallonji Group company Sterling & Wilson Solar (SWSL), a solar EPC company, will come out with a ₹3,125-crore initial public offering on August 6.

The issue, the price band of which has been fixed at ₹775-780 a share, will be an offer-for-sale (OFS) and it will close on August 8, the company said in its red herring prospectus.

Promoters Shapoorji Pallonji and Company will sell shares worth up to ₹2,083.33 crore and Khurshed Yazdi Daruvala will offload shares worth ₹1,041.67 crore. Daruvala is the Managing Director and one of the partners of Sterling and Wilson.

SWSL began operations in 2011 as the solar EPC division of Sterling & Wilson Pvt Ltd (SWPL). It demerged from SWPL in 2017. Further, the promoters will use a portion of the proceedings from the IPO to repay loans within 90 days of listing of the equity shares, Bikesh Ogra, Director and CEO said. These loans are owed by Sterling and Wilson International Solar FZCO and Sterling, and Wilson International FZE, a subsidiary of SWPL.

Further, the offer to QIBs will not be less than ₹2,343.7 crore, of which the anchor investor portion will be ₹1,406.2 crore. Also, non-institutional investors will be offered up to ₹468.7 crore and retail investors up to ₹312.5 crore, the prospectus said.

₹3,831.58-cr order book

As of March 31, 2019, SWSL had 205 commissioned and contracted solar power projects, with an aggregate capacity of 6,870.12 MWp, and its order book stood at ₹3,831.58 crore. It was one of the largest solar EPC solutions provider in India, Africa and West Asia in 2018, with 16.6 per cent, 36.6 per cent and 40.4 per cent market share, respectively, according to IHS Markit.

SWSL provides operations and maintenance services for solar installations, with 40.4 per cent of its business coming from West Asia, 16.6 per cent from India, and 36.6 per cent from Africa.

In fiscal 2019, SWSL had revenues of ₹824 crore, a 44 per cent CAGR growth from FY16 onwards, according to its prospectus. Companies such as SWSL are bullish on the Indian government’s target of installing 175 GW of renewable energy by 2022.

Cuts IPO size

The IPO comes at a time when the market is witnessing a slump. Bahadur Sam Dastoor, CFO, SWSL, said that the company has factored this in, and in consultation with its merchant bankers, has cut the size of its IPO to ₹3,125 crore from ₹4,500 crore.

Published on August 01, 2019

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