Anchor Investments Yield Rs 1,406 cr for Sterling and Wilson Solar

IPO bound Sterling and Wilson Solar has raised Rs 1,406 crore from anchor investments by allotting 1,80,28,846 equity shares

Initial public offering (IPO)-bound Sterling and Wilson Solar Ltd has revealed that it has raised Rs 1,406 crore from 27 anchor investors by allotting 1,80,28,846 equity shares at the upper band price of Rs 780 ahead of its initial issue that opens on August 6 this year. investments

Among the 27 anchor investors, leading investors 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, respectively, of the total anchor book size, the firm said in a statement. 

On August 1, Sterling said it will hit the bourses with its IPO to raise around Rs 3,125 crore on August 6, 2019.

The issue, which will close on August 8, 2019, comprises an offer for sale by promoters Shapoorji Pallonji and the company aggregating up to Rs 2,083.33 crore and Khurshed Yazdi Daruvala totalling Rs 1,041.67 crore. 

The price band for the offer has been fixed at Rs 775-780 per share, according to a statement by the company. The portion of the net proceeds will be utilised towards funding full repayment of the loans, the firm said. 

ICICI Securities, Axis Capital, Credit Suisse Securities India, Deutsche Equities India, IIFL Securities, SBI Capital Markets, IndusInd Bank and YES Securities India will manage the offer. 

Shares of Sterling and Wilson, a solar engineering, procurement and construction (EPC) solutions provider, are proposed to be listed on the BSE and the NSE.

In May, we reported that the firm had been ranked as the largest solar EPC solutions provider in the Indian market with a market share of 16.6 percent, 3 times the size of its closest competitor. The recognition came as a part of the Solar EPC and O&M Provider Tracker Q1 2019 report by the consultancy firm IHSMarkit.

The ranking is based on the annual installations of utility-scale PV systems of more than 5 MW in the year 2018. As the largest global Solar EPC solutions provider, Sterling and Wilson Solar had a global market share of 4.6% in the year 2018 – a number more than double that of the 2nd largest company globally.