Sterling and Wilson Solar (SWSL) was formed by the demerger of Sterling and Wilson Private Ltd (SWPL)’s solar EPC business. The demerger was approved in March 2018 to be effective from April 1, 2017. Sterling and Wilson Solar took over all the assets and liabilities of SWPL’s solar EPC business.

Sterling and Wilson Solar and SWPL are subsidiaries of Shapoorji Pallonji and Company Private Limited (SPCL). Sterling and Wilson Solar’s promoters also include Khurshed Daruvala, the chairman of the company, who holds 33 per cent stake (pre-IPO). Both SPCL and Khurshed Daruvala together are selling up to 25 per cent stake in the IPO offer. They expect to garner around ?3,125 crore from this issue.

The promoters intend to use part of the funds raised through this IPO to pay off the debts owed to Sterling and Wilson Solar by another company in the group.

The 12-month trailing price-to-earnings multiple is around 19.45 times, which looks expensively priced for investors. 

Sterling & Wilson offers customized solutions to its customers for solar power projects. The company follows a "hub-and-spoke" business model where services go from the central hub to several spokes or routes to reach the end-users. India works as a hub of the company for the complete supply chain including engineering functions, design, and engage 3rd party subcontractors and suppliers. The company aims to improve the performance ratio by offering cost-effective and innovative designing solutions supported by an engineering and competent design team. It has 138 employees in the design and engineering team.

Issue Opens: August 6 - 8 2019

Book Built Issue IPO

Issue Price: Rs 775 - Rs 780 Per Equity Share

Minimum Order Quantity: 19 shares

Listing on: NSE and BSE

Competitive Advantages
1. World's largest solar EPC solutions provider 2. High profile promoters 3. Healthy, improving financials

Risks

• Success rate: The six global coordinators and book running lead managers and two book running lead managers associated with the offer have handled 48 public issue in the past three years out of which 18 closed below the issue price on listing date.
• High PE: 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 the promoter selling shareholders is nil per equity share.