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Shapoorji Pallonji Group's Sterling & Wilson to launch Rs 3,125-crore IPO on August 6

Shapoorji Pallonji Group's solar engineering, procurement and construction (EPC) business, Sterling and Wilson Solar, has announced its initial public offering (IPO) worth Rs 3,125 crore on Thursday, fixed at a price band of Rs 775 to Rs 780 per equity share of Re 1 face value.

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Shapoorji Pallonji Group's Sterling & Wilson to launch Rs 3,125-crore IPO on August 6
Sterling and Wilson Solar has commissioned and contracted 205 solar projects with a total capacity of 6,870.12 MWp as on March 2019.

Shapoorji Pallonji Group's solar engineering, procurement and construction (EPC) business, Sterling and Wilson Solar, has announced its initial public offering (IPO) worth Rs 3,125 crore on Thursday, fixed at a price band of Rs 775 to Rs 780 per equity share of Re 1 face value.

The initial public offer of the solar unit worth has been trimmed down from the planned Rs 4,500 crore when it filed its proposal. From the total shares on offer, 50% are reserved for qualified institutional buyers, 15% for high net worth individuals or non-institutional bidder and 35% for retail individual investors.

The IPO opens on August 6 and closes on August 8. Post this, equity shares of the company are proposed to be listed on BSE and NSE.

The IPO comprises an offer for sale by the promoters Shapoorji Pallonji and Company Private aggregating up to Rs 2,083.33 crore and Khurshed Yazdi Daruvala amounting to Rs 1,041.67 crore. After the IPO, the stake of the company's promoter group will decline to an estimated 75% from 100%.

Mumbai-based Sterling and Wilson Solar will be the first Indian solar engineering and construction company to go public. According to its red herring prospectus, money raised from the IPO of Sterling & Wilson would go to the promoters, of which the promoters will utilise partly for repaying certain loans of Sterling and Wilson Solar and Sterling and Wilson International Solar FZCO.

As per the red herring prospectus submitted by the company, the objective of the offer are to achieve the benefits of listing the equity shares on the stock exchanges and for the offer of the equity shares by the Promoter selling shareholders. Further, the company expects that listing of the equity shares will enhance their visibility and brand image and provide liquidity to the shareholders and will also provide a public market for the equity shares in India.  

The IPO of Sterling & Wilson is managed by ICICI Securities, Axis Capital, Credit Suisse Securities (India), Deutsche Equities India, IIFL Securities, SBI Capital Markets, IndusInd Bank and YES Securities (India), while the registrar to the issue is Link Intime India Private Limited.

Incorporated in 2017, Mumbai-based Sterling & Wilson Solar Limited (SWSL) has a  presence in 26 countries and engages in providing solar engineering, procurement and construction (EPC) solutions to the end-users.

Sterling and Wilson Solar has commissioned and contracted 205 solar projects with a total capacity of 6,870.12 MWp as on March 2019.

"We have been the largest solar EPC solutions provider in India from 2015 to 2018 based on annual installations of utility-scale PV systems of more than five MWp, according to IHS Markit," the company said in its red herring prospectus.

SWSL is focused on utility scale solar power projects and manages solar projects from conceptualizing to commissioning. It provides operations and maintenance (O&M) services for third-party projects as well. It was previously named as Rashmika Energy Private Limited.

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