Sterling and Wilson Solar, engaged in solar engineering, procurement and construction business of Shapoorji Pallonji Group, made a weak debut in the secondary market today. The share of Sterling and Wilson Solar listed at a discount of over 10% against issue price on BSE due to tepid sentiment in IPO market and weak market conditions. On NSE, Sterling and Wilson Solar listed at 9.48% discount at Rs 706 per share compared to the issue price of Rs 780 per share.
On BSE, the share price of Sterling and Wilson Solar opened at Rs 700 against issue price of Rs 780, registering a decline of 10.25%.
By 9:55 am, the stock started gaining more momentum and rose to the day's high of Rs 755.50, a rise of 7.9% over the debut price (Rs 700). The stock has also made a day's low at Rs 691 on BSE, down 11% from listing price of Rs 780. By 11:30 am, the stock logged a market capitalisation (Mcap) of Rs 11,699.87 crore, as per BSE data.
The Rs 3,125-crore initial public offer of the solar unit was open for subscription during August 6 to August 8 at a price band of Rs 775 to Rs 780 per equity share of Re 1 face value.
An entire offer by sale issue by the promoters Shapoorji Pallonji (Rs 2,083.33 crore) and Khurshed Yazdi Daruvala (Rs 1,041.67 crore) was subscribed 92% during the IPO.
As per the red herring prospectus submitted by the Mumbai-based Sterling and Wilson Solar, the higher end of the price band of Rs 780 was priced at price to earnings of 19.6 times (post dilution) on FY19 consolidated basis, which as per Centrum Broking was fair. The promoters had said it would utilise a portion of issue proceeds towards funding full repayment of loans.
Sterling and Wilson Solar Ltd, promoted by the Shapoorji Pallonji Group, is the demerged Solar Engineering, Procurement and Construction (EPC) Division of Sterling and Wilson Pvt Ltd. With an international presence in 26 countries that account for 69.8% of FY19 revenue, it is the first Indian solar engineering and construction company to go public. SWSL offers a complete range of customised solutions for solar power projects. Its customers include leading independent power producers (IPPs), developers and equity funds.
Currently, Sterling and Wilson Solar share trades at Rs 729 on BSE, at a rise of 4.15% against the opening price of Rs 600. However, it continues to log a decline of 6.49% against the pre-decided issue price of Rs 780.
Edited by Rupa Burman Roy
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