Indian Solar EPC Firm Files For IPO

Sterling & Wilson Files Draft Prospectus For Initial Public Offering Worth INR 45 Billion Shares; Parent Company Shapoorji Pallonji Looking To Raise $1 Billion To Reduce Debt: Media
05:20 AM (Beijing Time) - 17. April 2019

Key Takeaways

  • Shapoorji Pallonji Group in India has filed a draft IPO prospectus for its solar EPC business, Sterling & Wilson, according to local business daily Mint
  • The IPO is a pure offer for sale by the company chairman who holds 33.33% stake and Shapoorji Pallonji & Company that owns 65.77%
  • According to Bloomberg, the parent company wants to raise about $1 billion by selling a 30% stake in the solar business to outside investors in order to reduce its debt

Sterling & Wilson, the solar EPC arm of Indian diversified business conglomerate Shapoorji Pallonji Group, has filed the draft prospectus for its initial public offering (IPO) with INR 45 billion ($646.27 million) worth of shares on offer.

Indian business daily Mint reported the IPO is a pure offer for sale by the company Chairman Khurshed Yazdi Daruvala who holds a 33.33% stake and Shapoorji Pallonji & Company that has a 65.77% stake, while the remaining shares are being held by individual members of the promoter group.

In November 2018, Bloomberg reported Sterling & Wilson’s parent company was looking to raise about $1 billion by selling its stake in the solar business to outside investors. Speaking with Bloomberg, Group Executive Director Jai Mavani had said the company wants to divest a 30% stake in Sterling & Wilson to be able to reduce its debt. The group may also divest its stake in some of its other businesses as well. It apparently has ICICI Securities on board to help file the IPO.

Sterling & Wilson is one of the largest global solar EPC players that garnered major attention in 2017 when it secured a contract to build the 1,177 MW solar power plant at Sweihan in Abu Dhabi as the world’s largest single location solar PV project (see Indian EPC Bags Sweihan Contract).

In February 2019, Wiki-Solar placed the Indian company on second position in its list of top solar EPC contractors in the world till 2018 with 2,663 MW of capacity installed in 58 projects (see First Solar Top EPC Contractor). According to Mint, as on December 31, 2018, Sterling & Wilson had 183 commissioned and contracted solar power projects with an aggregate capacity of over 6 GW.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani