Sterlite Power Transmission files IPO papers with SEBI; Anil Agarwal-led firm looks to raise Rs 1,250-cr

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August 17, 2021 1:29 PM

Sterlite Power Transmission (SPTL) has filed a draft red herring prospectus (DRHP) to launch Rs 1,250-crore IPO, with a face value of Rs 2 each

ipo, sterlite powerSterlite Power Transmission has reserved 75 per cent of the net issue for the Qualified Institutional Buyers (QIBs) and 15 per cent to Non-Institutional Bidders (NIIs)

Sterlite Power Transmission (SPTL) has filed a draft red herring prospectus (DRHP) to launch Rs 1,250-crore IPO, with a face value of Rs 2 each. The promoters of the company are Anil Agarwal and Twin Star Overseas. The shares of Sterlite Power Transmission will be listed on BSE and National Stock Exchange. According to the draft papers, the company may consider a pre-IPO placement of Rs 220 crore. The book running lead managers are Axis Capital, ICICI Securities and JM Financial. The registrar to the issue is KFin Technologies Private Ltd.

Sterlite Power Transmission has reserved 75 per cent of the net issue for the Qualified Institutional Buyers (QIBs) and 15 per cent to Non-Institutional Bidders (NIIs). While the remaining 10 per cent has been reserved for retail investors. There are no listed companies in India that engage in a business exactly similar to that of Sterlite Power Transmission. However, based on the various businesses that Sterlite Power Transmission operates, its listed peers include Power Grid Corporation of India, Adani Transmission, KEC International, Techno Electric & Engineering and KEI Industries.

The company’s average industry P/E stands at 45.36x, while the weighted average return on net worth is 128.59 per cent. Sterlite Power Transmission has planned to utilise the net proceeds towards the repayment or prepayment of certain borrowings availed by the company and KTL worth Rs 955 crore, and for general corporate purposes.

Sterlite Power Transmission has two business lines: Global Infrastructure and Solutions. Its Global Infrastructure business line bids for, designs, constructs, owns and operates power transmission assets and currently has operations in India and Brazil. While its Solutions business line consists of the products sub-segment, which manufactures and supplies a wide range of products including high-performance power conductors, optical ground wire and extra-high voltage cables; and the Master System Integration subsegment, which provides solutions for the upgrade, uprate and fiberization of existing transmission infrastructure projects.

According to S&P Global’s forecasts, India is likely to retain its position as the fastest-growing economy in the world in 2021. Based on its estimates, India will continue to occupy the top slot among major economies. Urbanization is a big growth driver for India, as this leads to faster infrastructure development, job creation, development of modern consumer services and the city’s ability to mobilize savings. Urban consumption in India has shown signs of improvement and, given India’s favourable demographics coupled with rising disposable income, the trend is likely to continue and drive economic growth for the country.

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