Sterling & Wilson IPO garners only 92% subscription on the last day

Shapoorji Pallonji company Sterling & Wilson Solar’s initial public offering (IPO) managed to garner only 92 per cent subscription on Thursday, the last day of the issue. The qualified institutional buyer (QIB) portion of the issue, however, garnered full subscription. The high networth individual (HNI) portion of the issue was subscribed 89 per cent, while retail investor portion was subscribed 30 per cent. 

Investment bankers said the IPO has gone through successfully thanks to the full subscription in the QIB portion. As the IPO was entirely an offer for sale (OFS), the issue size will be reduced to the extent of under-subscription, said a banker. 

In the IPO, promoters Shapoorji Pallonji Company and Khurshed Yazdi Daruval had put on the block shares worth Rs 2,083 crore and Rs 1,042 crore, respectively. The total issue size was Rs 3,125 crore, of which around Rs 1,400 crore was raised from anchor investors. The price band for the issue was Rs 775 and Rs 780 per share. At the top end, the company is valued at Rs 12,500 crore. 

Sterling & Wilson is a global engineering, procurement and construction (EPC) solutions provider. The company was the sole EPC solutions provider for the world’s largest single location solar plant of 1,177 MWp in Abu Dhabi