Sterling and Wilson Solar Limited IPO
(i) The Company is in the business of electromagnetic contracting for the last 3 generations as a ShapoorJi and Pallonji Group. However, in 2011 they saw a big opportunity in Solar business and they entered into it. They commenced operations in 2011 as the Solar EPC Division of SWPL and demerged from SWPL with effect from April 1, 2017, so that Solar as a separate business gets more value.
Over a span of seven years, they became the largest solar EPC solutions provider in each of India, Africa, and the Middle East according to IHS Markit in 2018 and currently have a presence across 26 countries.
(ii) They provide end-to-end solar engineering, procurement, and construction (“EPC”) solutions provider, and were the world’s largest solar EPC solutions provider in 2018 based on annual installations of utility-scale photovoltaic (“PV”) systems of more than five-megawatt peak (“MWp”), according to IHS Markit.
(iii) They provide EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning. They also provide operations and maintenance (“O&M”) services, including for projects constructed by third-parties.
(iv) As of March 31, 2019, they had 205 commissioned and contracted solar power projects with an aggregate capacity of 6,870.12 MWp.
The order book, which they define as the value of solar power projects for which they have entered into definitive EPC contracts minus the revenue already recognized from those projects, was 3831 Cr as of March 31, 2019.
In Fiscals 2018 and 2019, their Revenue from operations outside India accounted for 59.11% and 69.82% of the total revenue from operations, respectively
Interaction with Management
Objects of the Sterling and Wilson Solar Limited IPO:
Sterling and Wilson Solar Limited IPO Details:
|Open Date:||Aug 06 2019|
|Close Date:||Aug 08 2019|
|Face Value:||₹ 1 Per Equity Share|
|Issue Type:||Book Building|
|Lot Size:||19 Shares|
|Issue Price:||₹ 775-780 Per Equity Share|
|Listing Date:||Aug 20 2019|
Promoters And Management:
Financials of Sterling and Wilson Solar Limited IPO:
Comparison With Peers:
Recommendation on Sterling and Wilson Solar Limited IPO:
Lead Manager of Sterling and Wilson Solar Limited IPO:
Registrar of Sterling and Wilson Solar Limited IPO:
Bid Details of Sterling and Wilson Solar Limited IPO as on
08-Aug-2019 17:00:00 IST
Discussion on Sterling and Wilson Solar Limited IPO:
Sir apply or not? please guide’,what is the final verdict? I am tired of losing money now.
suggested to apply with amount you can risk. already affle ipo failed badly
how affle failed…lol …30% listing gain isnt enough fr u guyz
What are you expecting? A 100% listing gain?
Risk in the Sterling and Wilson Solar business:
1. As per CRISIL Research, demand for solar power has not developed as fast as many markets players have anticipated although the solar industry continues to experience increasingly lower costs, improved efficiency, and higher electricity output.
2. They operate in a highly competitive market where bidding is the way to get EPC business. To win a particular project one should have pricing, technical and design, and engineering expertise, financing capabilities, past experience, amount and type of guarantees given and track-record better than a competitor.
As they are operating as a separate, independent company for two years, they may not meet the bid requirements of track-record or technical and financial specifications on their own and recently they faced a similar issue in Vietnam to get a project where they were unable to count their prior 2017 experience.
3. If EPC Projects are delayed it leads to penalties under EPC contracts and harms the reputation with their customers and other stakeholders. There is various factor which leads to such delays.
a) the execution of a project in Argentina was delayed due to high-velocity winds.
b) Namibia due to a transporters’ strike that disrupted operations.
c) Morocco for various reasons, including extreme weather conditions and certain topographical challenges.
d) Another project in Zambia was delayed due to difficult topographical conditions, such as sinkholes and limestone.
4. Up to 35.76% of the Equity Shares are pledged in favor of a deposit accepting housing finance company, namely, Housing Development Finance Corporation Limited.
5. They procure raw materials from different parts of the world. Recently the Ministry of Finance of the Government of India recently imposed a safeguard duty at the rate of 25% ad valorem minus anti-dumping duty payable on the import of solar panels from July 30, 2018 to July 29, 2019 (inclusive),which will be lowered to a safeguard duty at the rate of 20% from July 30, 2019 to January 29, 2020 (inclusive) and 15% for the six months from January 30, 2019 to July 29, 2020 (inclusive). Such safeguard duty will not apply to import of solar panels from countries notified as developing countries by the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance, pursuant to notification no. 19/2016-Customs (N.T.) dated February 5, 2016, as amended except the People’s Republic of China and Malaysia.
can you suggest a good stock for mid term investment .
775 to 780 is the price band
Please provide more details of the IPO
SWSL is focused on utility-scale solar power projects and manages the solar projects from conceptualizing to commissioning. It provides operations and maintenance (O&M) services for the 3rd party projects as well . According to IHS Markit, the company was the world’s largest solar EPC solutions provider in 2018 based on annual installations of utility-scale PV systems. Currently, it has a wide presence across 26 countries.
Sterling & Wilson offers customized solutions to its customers for solar power projects. The company follows a “hub-and-spoke” business model where India works as a hub for various services.
World’s largest solar EPC solutions provider
. A dedicated design and engineering team
Takes benefits of the brand image of the SP group and S&W
Strong financial performance
The Price/Earnings ratio based on diluted EPS for fiscal 2019 for the issuer at the upper end of the Price Band is as high as 19.57.
The average cost of acquisition per Equity Share for our promoter selling shareholders is nil per equity share.
The promoters of the Company are Shapoorji Pallonji and Company Pvt Ltd and Khurshed Yazdi Daruvala.
Summary of financial Information (Restated)
Particulars For the year/period ended (in Rs. 10 Lakhs)
31-Mar-19 31-Mar-18 31-Dec-17
Total Assets 53,919.19 49,203.81 35,701.70
Total Revenue 82,404.08 68,717.08 32,324.81
Profit After Tax 6,382.33 4,505.35 1,733.62
Objects of the Issue:
The objects of the Offer are:
1. To achieve the benefits of listing the Equity Shares on the Stock Exchanges.
2. For the Offer of the Equity Shares by the Promoter Selling Shareholders.
3. To enhance visibility and brand image.
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