Sterling and Wilson Solar Ltd (SWSL), the end-to-end solar engineering, procurement and construction (EPC) solutions provider, will hit the capital market with an initial public offering (IPO) on August 6.
The company is looking to raise Rs 3,125 crore through the IPO that will close on August 8. After consultation with merchant bankers, Sterling fixed a price band at Rs 775-780 per share.
The issue comprises an offer for sale by the promoters Shapoorji Pallonji and Company Private Limited aggregating up to Rs 2,083.33 crore and Khurshed Yazdi Daruvala totalling Rs 1,041.67 crore.
The promoters will utilise a portion of funds towards full repayment of the loans due to the company and Sterling and Wilson International Solar FZCO from SWPL and Sterling and Wilson International FZE (a subsidiary of Sterling and Wilson Private Limited-SWPL), respectively within 90 days of listing of the equity shares, a release said.
Sterling and Wilson Solar, which has a presence in 26 countries, was the largest solar EPC solutions provider in India, Africa and Middle East in 2018, with 16.6 percent, 36.6 percent and 40.4 percent market share, respectively, according to IHS Markit.
The company also provides operations and maintenance (O&M) services, including for projects constructed by third-parties.
Sterling and Wilson Solar commenced operations in 2011 as the solar EPC division of SWPL. It demerged from SWPL April 1, 2017.
As of March 31, 2019, the company had 205 commissioned and contracted solar power projects, with an aggregate capacity of 6,870.12 MWp and its order book stood at Rs 3,831.58 crore.
ICICI Securities, Axis Capital, Credit Suisse Securities (India), Deutsche Equities India, IIFL Securities, SBI Capital Markets, IndusInd Bank and YES Securities (India) are book running lead managers to the offer. Link Intime India Private Limited is the registrar to the issue.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.