Sterling & Wilson Solar IPO Closes With 92% Subscription
Solar panels implemented by Amplus Solar stand on the roof. (Photographer: Prashanth Vishwanathan/Bloomberg)

Sterling & Wilson Solar IPO Closes With 92% Subscription

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The initial public offer of Shapoorji Pallonji group firm Sterling & Wilson Solar Ltd. closed on Thursday with 92 percent subscription that will raise around Rs 2,900 crore.

In a statement, the company said the issue was subscribed 92 percent, with qualified investor portion getting fully subscribed even as retail portion remained under-subscribed due to tough market conditions.

The IPO, through which the company plans to raise about Rs 3,125 crore, received bids for 1,89,32,835 shares against the total issue size of 2,21,77,418 shares, as per the National Stock Exchange data till 17:00 hours.

The price range for the offer was fixed at Rs 775-780 per share.

According to the statement, the IPO closed successfully, backed by marquee global institutional investors.

"Due to the recent market conditions and changes in the application process, the retail portion was not fully subscribed," it added.

The initial public offer of Sterling & Wilson Solar was subscribed 32 percent on the second day of bidding on Wednesday.

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

On Monday, Sterling & Wilson Solar raised Rs 1,406 crore from 27 anchor investors.

The portion of the net proceeds would be utilised towards funding full repayment of the loans, the firm had said.

“As the issue is entirely an Offer-for-Sale and the Qualified Institutional Buyers portion is 75 percent, the basic requirement for the success of the same according to the The Securities and Exchange Board of India regulations, is that the QIB portion should be fully subscribed.

“Hence, this OFS of Sterling and Wilson Solar is successfully subscribed with an overall 92 percent subscription,” the statement said.

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.

Shares of Sterling and Wilson, a solar engineering, procurement and construction solutions provider, are proposed to be listed on the Bombay Stock Exchange and the NSE.

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