About the Company:
Sterling and Wilson Solar Ltd is a global company and an end-to-end solar engineering, procurement and construction (“EPC”) solutions provider, and were the world’s largest solar EPC solutions provider in 2018.
Company provides 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.
Company also provide operations and maintenance (“O&M”) services, including for projects constructed by third-parties.
Company offers a complete range of customized solutions for solar power projects.Customers include leading independent power producers (“IPPs”), developers and equity funds.
Company currently has a presence across 26 countries. As of March 31, 2019, company has 205 commissioned and contracted solar power projects with an aggregate capacity of 6,870.12 MWp.
Company’s order book, which is defined as the value of solar power projects for which company has entered into definitive EPC contracts minus the revenue already recognized from those projects, was Rs.3831.5 crores ($555 million) as of March 31, 2019.
In Fiscals 2018 and 2019, Company’s revenue from operations outside India accounted for 59.11% and 69.82% of our total revenue from operations, respectively.
Sterling and Wilson Solar Ltd commenced operations in 2011 as the Solar EPC Division of SWPL and demerged from SWPL with effect from April 1, 2017.
Over a span of seven years,Company has become the largest solar EPC solutions provider in each of India, Africa and the Middle East
Company’s Business Segments:
- Solar EPC business.
- EPC contracts.
Company’s Indian Operations:
As of March 31, 2019, of the 160 commissioned solar power projects in India company has commissioned 55 rooftop solar power projects with an aggregate capacity of 31.92 MWp.
As of March 31, 2019, Company had presence in 14 locations in India, including in the states of Chhattisgarh, Gujarat, Madhya Pradesh, New Delhi and Kerala.
Company’s International Operations:
Company is currently expanding its presence internationally, with an emphasis on Middle East and North Africa region, rest of Africa, Europe, the United States and Latin America and Australia.
Company is the largest solar EPC solutions provider in the Middle East in 2018 based on annual installations of utility-scale PV systems of more than five MWp.
Major Projects Completed by the Company:
- Single location solar power plant of 1,177 MWp in Abu Dhabi.
- 22.32 MWp solar power project in Philippines.
- 36.3 MWp solar power project in Rajasthan, India.
- 580 MWp solar power project in Rajasthan, India.
Company’s Order Book: (in Millions)
- Mr. Khurshed Yazdi Daruvala (Designation: Chairman and Non-Executive Non-Independent Director)
- Mr. Pallon Shapoorji Mistry (Designation: Non-Executive Non-Independent Director)
Positives for the Company:
Largest Global Solar EPC Solutions Provider in a Fast Growing Solar Industry.
- Company is the world’s largest solar EPC solutions provider, based on annual installations of utility-scale PV systems of more than five MWp, with a market share of 4.6% in 2018.
- Company is also the largest solar EPC solutions providers in each of India, Africa and Middle East in 2018 with 16.6%, 36.6% and 40.4% market share, respectively.
- In 2017, Company had won the bid for the 1,177 MWp solar power project in Abu Dhabi, which is the world’s largest single location solar PV plant.
Global Presence & Large Scale Execution Capabilities:
- Currently company has a presence across 26 countries with operations in India, South East Asia, Middle East and North Africa, rest of Africa, Europe, United States and Latin America and Australia, which has helped us diversify our business globally.
- As of March 31, 2019, company had 205 commissioned and contracted solar power projects with an aggregate capacity of 6,870.12 MWp, that included 177 commissioned projects with an aggregate capacity of 5,271.34 MWp and 28 contracted solar power projects with an aggregate capacity of 1,598.78 MWp.
Strong Order Book:
- As at March 31, 2019 company’s order book was Rs.3831.5cr and has received letters of intent of Rs.3908.1 cr (of which Rs. 2195.9 cr were converted into definitive EPC contracts since March 31, 2019) for solar power projects for which company has won the bid, but have not yet executed definitive EPC contracts.
Strong parentage and ability to Leverage Global “SP” brand.
- Sterling and Wilson Solar Ltd benefits from the brand reputation, industry relationships and project management expertise of the Shapoorji Pallonji group (the “SP Group”) and the Sterling and Wilson group (“S&W”).
- The SP Group is a global conglomerate and has over 150 years of experience as an EPC solutions provider in various industries across 45 countries.
- As of March 31, 2018, the total consolidated assets of Shapoorji Pallonji and Company Private Limited (“SPCPL”), the flagship company of the SP Group was Rs.56,353.1 crores.
Negatives for the Company:
The outstanding borrowings directly availed by Sterling and Wilson Solar Ltd (on a consolidated basis) as on June 30, 2019 was Rs.6457.8 crores.
To begin with i would like to tell you that the solar power industry is heavily influenced by government regulations and policies and changes in such regulations or elimination of economic incentives in the solar power industry may have a direct impact on the business.
The governments world over are giving a big push for solar energy but the Solar Energy tariffs have come down significantly in recent years, which has resulted in too much pressure on margins of Solar companies.
And if we take a look at company’s Order book, a major chunk of company’s orders come from Middle Eastern countries where the government finances are stretched because of low crude oil prices which may pose a significant risk in future.
Moreover the Solar related companies which came with the IPOs in the past never gave any returns to the investors.
So taking into account the various factors , We will be avoiding the IPO. (Also Read: Affle IPO Review)
Financials of the Company: (Consolidated)
|(in Crores)||FY 17||FY 18||FY 19|
|Issue Opens on||6th August 2019|
|Issue Closes on:.||8th August 2019|
|Issue Price||Rs.775 – 780|
|Minimum Lot||19 Shares|
|Issue Size||Rs.3125 cr ($ 453 million)|
|Market Cap||Rs. 12,508 cr ($ 1.81 billion)|
|Listing at||NSE & BSE|
|Equity Shares Offered (OFS)||4,00,64,102|
|Equity Shares Prior to the Issue||16,03,60,000|
|Equity Shares after the issue||16,03,60,000|
Also Read: Spandana Spoorthy Financial Ltd
|Finalization of Basis of Allotment||on or Before 14th August 2019|
|Initiation of Refunds||on or Before 16th August 2019|
|Credit of Equity Shares:||on or Before 19th August 2019|
|Listing Date:||on or Before 20th August 2019|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
Link InTime Website (Click on the below Link)
|Company Contact Info:|
|Sterling and Wilson Solar Limited
9th Floor, Universal Majestic
P.L. Lokhande Marg, Chembur (West)
Telephone no.: +91 22 2548 5300
|IPO Registrar Info:|
|Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S Marg, Vikhroli (West)
Mumbai 400 083
Telephone no.: +91 22 4918 6200