homeenergy NewsIPO proceeds will flush out the company's debt, says Sterling and Wilson Solar's Khurshed Daruvala
IPO proceeds will flush out the company's debt, says Sterling and Wilson Solar's Khurshed Daruvala
Sterling and Wilson Solar Ltd (SWSL), the end-to-end solar engineering, procurement and construction (EPC) solutions provider, will hit the capital market with an initial public offering (IPO) on August 6. CNBC-TV18 spoke with Sterling & Wilson Solar promoter Khurshed Daruvala and asked him about the IPO under the current market conditions.
Sterling and Wilson Solar Ltd (SWSL), the end-to-end solar engineering, procurement and construction (EPC) solutions provider, will hit the capital market with an initial public offering (IPO) on August 6.
CNBC-TV18 spoke with Sterling & Wilson Solar promoter Khurshed Daruvala and asked him about the IPO under the current market conditions.
Daruvala said: "Initially, we were looking at raising about Rs 4,500 crore but given the market conditions we had a discussion with the investment banks last week and since this is the first IPO coming out for the group in 150 years, we all were very particular that it needs to be a successful IPO for us and for the investors. So we had a chat with the investment banks asking that with the current demand that we already have, what would be the right sized IPO to make it a success and the recommendation came from them that Rs 3,125 crore would be the appropriate size and that is what we have gone with."
Daruvala added: "Sterling and Wilson Solar, the entire inter-corporate deposit that is placed from solar to the non-solar business, that still stays exactly what it is because that is an amount which is much smaller than Rs 3,000 crore. So that will get flushed out anyway and then the balance amount that was going to be used at a group level for deleverage that will be reduced by the size that we have gone down with. So that does not affect Sterling Wilson as such."
On the companies growth prospects, he said, "We would say that until 2021 there is going to be in our view a large amount of growth because of the geographical expansion that we have done. So, you will see a large amount of growth moving into up to 2021. Two thousand twenty two onwards we would presume that we will grow with market."
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: What rural Delhi wants
May 16, 2024 10:10 PM
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM
Why Google CEO is cautiously optimistic about the election year
May 16, 2024 9:51 AM
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM