Sterling & Wilson Solar in talks to raise Rs 740 crore

September 10, 2021 8:09 AM

“The talks are in advanced stages and the company is hopeful of tying up the funds before the deadline. The promoters are in discussions with a clutch of investors including high net worth individuals, private equity funds and large companies,” a source close to the development said.

solarEarlier in August, SWSL said it was exploring business opportunities in areas such as clean energy storage, waste management and energy efficiency.

By Rajesh Kurup, 

The promoters of Sterling and Wilson Solar (SWSL) are in talks with a clutch of investors to raise about Rs 740 crore to repay outstanding loans. The company intends to raise the funds through a combination of stake sale and debt.
As per earlier commitments, the solar engineering, procurement and construction (EPC) firm has to repay the loans by September 30, 2021.

“The talks are in advanced stages and the company is hopeful of tying up the funds before the deadline. The promoters are in discussions with a clutch of investors including high net worth individuals, private equity funds and large companies,” a source close to the development said.

However, the names of the firms could not be immediately ascertained. When contacted an SP Group spokesperson declined to comment. Shapoorji Pallonji Group holds a 51% stake in the company and parent firm Sterling & Wilson chairman Khurshed Yazdi Daruvala holds an 18% stake, while the remaining is held by public shareholders and others.

The loan is part of an inter-corporate debt, which stood at Rs 2,644 crore at the time of the IPO in 2019. The promoters subsequently paid down a substantial part of the debt over the last 18 months. Currently, the loan amount stands at about Rs 740 crore.

Earlier in August, SWSL said it was exploring business opportunities in areas such as clean energy storage, waste management and energy efficiency. It had inserted a new clause in its Memorandum of Association to include new segments like setting up of power plants, solar energy systems, renewable energy systems or any other facility including Hybrid Energy Systems & Energy Storage in its business.

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