Sterling & Wilson Solar IPO Records 9% Subscription on Day 1

The IPO of Sterling & Wilson Solar was subscribed 9 percent on the first day of bidding on August 6, 2019.

The initial public offer (IPO) of Sterling & Wilson Solar Ltd was subscribed 9 percent on the first day of bidding on August 6, 2019. The IPO through which the company plans to raise about Rs 3,125 crore received bids for 21,06,264 shares against the total issue size of 2,21,77,418 shares, as per NSE data. 

The category for qualified institutional buyers (QIBs) was subscribed 6 percent, noninstitutional investors 19 percent and retail individual investors 6 percent. Its price range has been fixed at Rs 775-780 per share. The issue will close on August 8. 

The offer comprises an offer for sale by promoters Shapoorji Pallonji and the company aggregating up to Rs 2,083.33 crore and Khurshed Yazdi Daruvala totaling Rs 1,041.67 crore. 

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

Sterling and Wilson Solar on August 5, 2019, announced that it had 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 opened on the next day. The portion of the net proceeds will be utilised towards funding full repayment of the loans, the firm had said. 

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. 

Shares of Sterling and Wilson, a solar engineering, procurement and construction 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.