sterling and wilson ipo

Sterling and Wilson IPO

Sterling & Wilson is a global pure-play, end-to-end solar engineering, procurement and construction (“EPC”) solutions provider.

Sterling & Wilson Solar provide EPC services primarily for utility-scale solar power projects with a focus on project design and engineering. The Company also provides operations and maintenance (“O&M”) services.

Sterling & Wilson is the world’s largest solar EPC solutions provider in 2018 based on annual installations of utility-scale photovoltaic (“PV”) systems of more than five mega-watt peak according to IHS Markit. It also became the largest solar EPC solutions provider in each of India, Africa and the Middle East according to IHS Markit in 2018

Sterling & Wilson Solar seeks to leverage this business model to procure products and services solutions for the customers at competitive prices.  Customers of Sterling & Wilson Solar also benefit from the company relationships with key stakeholders, such as, suppliers, project lenders and consultants, which help to execute projects for customers efficiently and at competitive prices.

Promoters Sterling and Wilson Solar

Khurshed Yazdi Daruvala and Shapoorji Pallonji Co.

Strength of Sterling and Wilson Solar IPO

  1. Largest global solar EPC solutions provider in a fast-growing solar industry.
  2. Comprehensive end-to-end EPC solutions provider with a global execution track record.
  3. As of March 31, 2019, the company had 205 commissioned and contracted solar power projects (6,870.12 MWp) & its order book stood at Rs 3,831.58 Cr.
  4. Focus on increasing operational and financial efficiency.

Weakness of Sterling and Wilson Solar IPO

  1. Trade policies have, in recent years, become a major concern for the solar power industry.
  2. Any policies that create barriers to installing new solar PV systems could negatively impact the solar power industry.
  3. Intensified price competition also poses another risk to the solar power industry.
  4. As price competition intensifies, profits could deteriorate and cash reserves could be diminished.

 

Sterling and Wilson Solar IPO Details

IPO Opens on: 6 August 2019

IPO Close on: 8 August 2019

Price Band: Rs 775 to Rs 780

Bid Lot: 19 Shares & in Multiple of 19 Shares

Maximum Price: Rs 14,820

Fresh Issue: Nil

Offer For Sale: 3,125 Cr

IPO Size: 3,125 Cr

Sterling and Wilson Solar IPO Time Line

Finalisation of Allotment: 14 August 2019

Initiation of Refunds:16 August 2019

Transfer of Shares to Demat Account: 19 August 2019

Listing At: NSE & BSE

Listing Date: 20 August 2019​

Financial Performance of (in Million) Sterling and Wilson Solar

FY19 FY18 FY17
Total Assets 53,919 49,203 35,701
Total Revenue 82,404 68,717 32,324
Profit After Tax 6,382 4,505 1,733

Sterling and Wilson Solar IPO Valuations

Face Value = Rs 1

Earnings Per Share (EPS) = Rs 39.85

PE Ratio = 19.5 (Approx)

Return on Net Worth (RONW) = 62%

Net Asset Value = Rs 63.79/ Share

Sterling and Wilson Solar IPO Subscription Details

Category Shares offered Subscription (no. of times, at 6 pm)
Day 1 Day 2 Day 3
QIB 0.06x 0.19x 1.02x
NII 0.19x 0.68x 0.89x
Retail 0.06x 0.15x 0.29x
Total 0.10x 0.32x 0.85x

Grey Market Premium of Sterling and Wilson Solar IPO

Grey market premium as on 09-08-2019 is Rs 4-5/Share

Grey market premium as on 08-08-2019 is Rs 5-10/Share

Grey market premium as on 07-08-2019 is Rs 5-10/Share

Grey market premium as on 06-08-2019 is Rs 5-10/Share

Grey market premium as on 05-08-2019 is Rs 50/Share

Grey market premium as on 04-08-2019 is Rs 50/Share

Grey market premium as on 03-08-2019 is Rs 50/Share

Grey market premium as on 02-08-2019 is Rs. 0-0

Grey market premium as on 01-08-2019 is Rs. 0-0

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