Sterling & Wilson Solar Power IPO details:
IPO date: 6 August – 8 August 2019
Issue Size: 3125 Cr
Offer Price: Rs 775 – Rs 780 Per Equity Share
Market Lot: 19 Shares & multiples
Exchange Listing: BSE, NSE
IPO Timelines (tentative dates):
Allotment & refund: 16 August
Credit to Demat: 19 August
Listing on Exchange: 20 August
Company Promoters: Shapoorji Pallonji group and Khurshed Yazdi Daruvala
Objective of the Issue:
Offer For Sale (OFS) by promoter to enhance visibility and brand image.
IPO Registrar: Link Intime India Private Ltd
- Sterling and Wilson Solar Ltd (SWSL – a subsidiary of Sharpoorji Pallonji group) is the largest global solar engineering, procurement and construction (EPC) solutions provider company.
- Company expanded to 26 countries and became the largest solar EPC solutions provider in each of India, Africa and the Middle East.
- Current order book stood at Rs 3831 Cr
company website: https://sterlingandwilson.com/
- 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 Solar Power IPO Review:
valuations as on 31st Mar 2019:
1. Earning per share (EPS): 40
2. Price to Earning ratio (P/E): 20
3. Price to Book value: 12
Company category: fast-grower
- Largest global solar EPC solutions provider in a fast-growing solar industry.
- Higher number of repeat orders from the existing customers.
- Reputed promoter (Sharpoorji Pallonji brand).
- Strong financial performance & order book.
- Slowdown in global economic markets leading to subdued demand of solar services.
- Client concentration (risk) among top-10 customers.
- Intensified price competition poses risk to the solar power industry
There is no direct listed peer in India.
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- Largest global player, high demand solar industry, reputed promoter, Strong financial performance are the plus.
- While current slowdown in global economic markets, client concentration are the risk. Price to Earning (P/E) is around 20 which looks fully priced.
- Considering all the factors, my personal view is “Positive” for listing gain. But due to current market volatility I recommend you to watch QIB & NII for first 2 days & based on the response take the decision.
BullRun IPO Ratings: 3 stars out of 5 stars
Analysis video link: https://youtu.be/4O0RYHo6Rhk
Sterling & Wilson IPO allotment check:
- how and where to check allotment status (link)
Sterling & Wilson IPO subscription status:
EPS – Earning per share
OFS – Offer for Sale
P/E – Price to Earning
RoE – Return on Equity
PAT – Profit After Tax
QIB – Qualified Institutional Buyer
NII – Non-Institutional Investors
RII – Retail Individual Investor
CAGR – Compounded Annual Growth Rate
Disclaimer & Conflict of Interest:
The above analysis is based on my understanding of the company and RHP of Sterling & Wilson Solar IPO. You should research more and consult your financial adviser before taking any decision.
Analysis by – NISM Certified Research Analyst & Investment Advisor.