Sterling and Wilson Solar Limited lists at Rs 700 with lackluster response
Shapoorji Pallonji Group company Sterling and Wilson Solar Limited debuted on stock exchanges at ₹700, nearly 10 percent lower from its issue price of ₹780. The solar engineering and construction company issue failed to list at premium as many analysts were expecting.
Sterling and Wilson Solar Limited initial public offering (IPO) offered during 6-8 August with a price band of ₹775-780 a share.
It will be interesting to see where the stock ends its first day on the stock markets.
"Based on FY19 consolidated numbers, the issue is priced at a price to earnings of 19.6 times. The company is likely to benefit from being the largest global EPC contractor (in an industry that is seeing a massive thrust towards renewable energy), an asset-light business model and strong parentage," said Motilal Oswal Financial Services Ltd.
Sterling and Wilson Solar Ltd, promoted by the Shapoorji Pallonji Group is the demerged Solar Engineering, Procurement and Construction (EPC) Division of Sterling and Wilson Pvt Ltd. The company is expected to improve its margins and register better sales.