Sterling and Wilson Solar Ltd, the solar engineering and construction firm owned by the Shapoorji Pallonji Group, has launched its initial public offering (IPO) with a target to raise Rs 3,125 crore from the capital markets. The IPO will be open for subscription from 6 August to 8 August. If you are planning to invest money in this issue, here are the key details you should know:
- Sterling and Wilson Solar has fixed the price band of the IPO at Rs 775-780 per share.
- The minimum bid lot is 19 equity shares and in multiples of 19 equity shares thereafter.
- The issue comprises an offer for sale (OFS) by the promoters Shapoorji Pallonji and Company Pvt. Ltd aggregating up to Rs 2,083.33 crore and Khurshed Yazdi Daruvala totalling Rs 1,041.67 crore.
- After the public issue, the shareholding of promoters Shapoorji Pallonji and Company and Khurshed Yazdi Daruvala will be reduced to 49.11% and 25.01% from 65.77% and 33.33%, respectively.
- Sterling and Wilson Solar will not directly receive any proceeds from the offer, and all the offer proceeds will be received by the shareholders selling stake.
- The promoters will utilise a portion of funds towards the full repayment of loans due to the company and Sterling and Wilson International Solar FZCO from Sterling and Wilson Pvt. Ltd and its subsidiary Sterling and Wilson International FZE, respectively, within 90 days of listing of the equity shares.
- Of the total fund-raising plan, Sterling and Wilson Solar has already garnered Rs 1,406 crore from 18 anchor investors, including global and domestic funds and investors on 5 August. The leading anchor investors include Nomura India Investment Fund, Schroder International, and Abu Dhabi Investment Authority among others.
- Sterling and Wilson Solar was ranked as the world’s largest global solar EPC solutions provider in 2018 with a market share of 4.6%. The company’s profit in FY19 increased by 41.66% year-on-year (YoY) to Rs 638 crore, while revenue grew by 19.9% to Rs 8,240 crore compared. The company’s current order backlog stands at Rs 6,500 crore.
- Most of the brokerages are advising investors to subscribe to the Sterling and Wilson Solar IPO, mainly because of its dominant position in solar EPC segment, robust order book providing strong revenue visibility, asset light business model, strong parentage of Shapoorji Pallonji Group and strong financials etc.
- The book running lead managers to the issue are ICICI Securities, Axis Capital, Credit Suisse Securities (India), Deutsche Equities India, IIFL Securities and SBI Capital Markets, IndusInd Bank and YES Securities (India).
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