World’s largest pure-play, end-to-end solar engineering, procurement and construction (EPC) solutions provider, Sterling and Wilson Solar Limited will hit the bourses with its Initial Public Offering (IPO) targeting to raise Rs 3,125 crores on August 6, 2019 at a price band of Rs 775 to Rs 780.The issue, which closes on August 8, 2019, comprises of an offer for sale by the promoters Shapoorji Pallonji and Company Private Limited aggregating up to Rs 2,083.33 crores and Khurshed Yazdi Daruvala totalling Rs 1,041.67 crores.The Promoter Selling Shareholders will utilise a portion of the Net Offer Proceeds, towards funding full repayment of the loans due to the Company and Sterling and Wilson International Solar FZCO from SWPL and Sterling and Wilson International FZE (a subsidiary of SWPL) respectively within 90 days from the date of listing of the Equity Shares.The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). This Offer is being made through the Book Building Process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein not less than 75% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company and the Promoter Selling Shareholders in consultation with the GCBRLMs and BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. If at least 75% of the Offer cannot be allotted to QIBs, the Bid Amounts received by our Company shall be refunded.Further, not more than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All Bidders, other than Anchor Investors, are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA Account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”), as the case may be. For details, see “Offer Procedure” beginning on page 459.ICICI Securities Limited, Axis Capital Limited, Credit Suisse Securities (India) Private Limited, Deutsche Equities India Private Limited, IIFL Securities Limited and SBI Capital Markets Limited are acting as the Global Co-ordinators and Book Running Lead Managers to the Offer and IndusInd Bank Limited and YES Securities (India) Limited are acting as the Book Running Lead Managers to the Offer. Link Intime India Private Limited is the Registrar to the Offer.
About Sterling and Wilson Solar Limited (SWSL)
SWSL was the world’s largest solar EPC solutions provider, based on annual installations of utility-scale PV systems of more than five MWp, with a market share of 4.6% in 2018 which increased from 0.3% in 2014, according to global information provider IHS Markit.The Company is also the largest solar EPC solutions providers in each of India, Africa and Middle East in 2018 with 16.6%, 36.6% and 40.4% market share, respectively, according to IHS Markit. In 2017, it won the bid for the 1,177 MWp solar power project in Abu Dhabi, which is the world’s largest single location solar PV plant, according to CRISIL Research.Solar energy is one of the fastest growing forms of renewable energy, according to IHS Markit. The total cumulative installed solar PV generation capacity could reach nearly 1,090 GWDC globally by 2022, compared to less than 100 GWDC at the end of 2012, and the levelized cost of electricity for solar PV projects decreased sharply between 2012 and 2018 and is expected to continue to decrease until 2030.The Company also provides operations and maintenance (O&M) services, including for projects constructed by third-parties.Sterling and Wilson Solar commenced operations in 2011 as the Solar EPC Division of SWPL and demerged from SWPL with effect from April 1, 2017. Over a span of seven years, it became the largest solar EPC solutions provider in each of India, Africa and the Middle East according to IHS Markit in 2018. It currently has a presence across 26 countries with operations in India, South East Asia, Middle East and North Africa, rest of Africa, Europe, United States and Latin America and Australia.As of March 31, 2019, the Company had 205 commissioned and contracted solar power projects with an aggregate capacity of 6,870.12 MWp and its order book stood at Rs 3,831.58 crores as of March 31, 2019.In Fiscals 2018 and 2019, its revenue from operations outside India accounted for 59.11% and 69.82% of the total revenue from operations, respectively. The Company often receives repeat orders from its customers and as of March 31, 2019 the clientele in India and outside India for whom it has executed more than one project constituted 83.26% and 64.35% of its total commissioned solar capacity, respectively.Sterling and Wilson Solar’s total revenue from operations was Rs 1,640.2 crore, Rs 6,871.71 crores and Rs 8,240.41 crores in Fiscals 2017, 2018 and 2019, respectively. The combined profit after tax was Rs 31.43 crores in Fiscal 2017 and the consolidated profit after tax was Rs 450.54 crores and Rs 638.23 crores in Fiscals 2018 and 2019, respectively.