Sterling and Wilson Opens IPO After Raising ₹1,406 Crore From Anchor Investors

The IPO for the solar engineering and construction arm of the Shapoorji Pallonji Group opened today.

Shapoorji Pallonji-led EPC firm Sterling and Wilson Solar’s (SWSL) 3,125 crore IPO has hit the market today. After receiving an approval to raise 4,500 crore, the promoters of the company have decided to sell shares worth 3,125 crore

Market analysts maintain that the firm, one of the top Indian firms in the solar EPC space, is well placed to capitalize on the opportunities from the solar power sector and have given ‘subscribe’ ratings to the issue from a long-term perspective.

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The IPO comprised entirely of an offer for sale of 4.01-4.03 crore shares. Its main objective is to carry out disinvestment by Shapoorji, and SWSL will not receive any proceeds from the offer. The issue is priced at 775-780 per share.

After the IPO, Shapoorji Pallonji and Company and Khurshed Yazdi Daruvala will reduced their stakes to 49.11 percent and 25.01 percent from 65.77 percent and 33.33 percent, respectively. The promoters intend to use a portion of the proceeds to make complete repayment of loans due to the company.

Sterling and Wilson Solar on Monday said it has raised 1,406 crore from 27 anchor investors by allotting 1,80,28,846 equity shares at the upper band price of 780 ahead of its initial issue that opens on August 6.

Among the 27 anchor investors, leading investors reportedly include Nomura India Investment Fund, Schroder International, and Abu Dhabi Investment Authority who have been allocated 16 percent, 12.24 percent and 8.82 percent, of the total anchor book size, the firm said in a statement.

In 2018, it was the world’s largest solar EPC solutions provider based on annual installations of utility-scale photovoltaic (PV) systems of more than five mega-watt peak (MWp) and a market share of 4.6 percent. SWSL is also a leading solar EPC solutions provider in India, Africa and Middle East with 16.6 percent, 36.6 percent and 40.4 percent market share, respectively, according to IHS Markit.

On August 1, Sterling said it will hit the bourses with its IPO to raise around 3,125 crore on August 6 and the offer will close on August 8.

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