Shares of this renewable energy company clocked 5 percent upper circuit after the company raised Rs.1,500 crores through the Qualified Institutions placement (QIP). The shares have delivered more than 60 percent returns to its shareholders.
With a market capitalization of Rs. 8,450 crores, the shares of Sterling and Wilson Renewable Energy Ltd started Friday’s trading session on a higher note at Rs. 445.30 compared to its previous close of Rs. 424.10. During the trading session, the share hit a 5 percent upper circuit at Rs. 445.30 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had completed the fundraising of Rs. 1,500 crores through the Qualified Institutions placement (QIP) route. Furthermore, they mentioned that the QIP witnessed a strong response from both domestic mutual funds and marquee global FIIs.
On December 14, 2023, the Securities Issuance Committee of the board of directors approved the issue and allotment of 4.32 crore equity shares of face value Rs. 1 each to eligible qualified institutional buyers at the issue price of Rs 347 per equity share.
Speaking on the response, Mr Amit Jain, Global CEO, of Sterling and Wilson Renewable Energy stated “Through this QIP, we are more strategically positioned to harness the immense potential of the renewable energy market, globally. As a company, we continue to stay committed to our vision of accelerating a renewable future by delivering high-quality renewable solutions that drive sustainability and make a positive impact on the world”.
Coming onto the company’s financial statement, the revenue increased by 47 percent from Rs. 515 crores in the June quarter to Rs. 760 crores during the September quarter. On the other hand, the net losses narrowed down from Rs.95 crores to Rs. 55 crores during the same timeframe.
As of September 30, 2023, the company’s order book increased to approximately Rs. 6835 Crores, with nearly 98 percent of the order book comprising domestic EPC projects. The new orders of the company comprised approximately Rs. 2640 Crores in Q2 FY2024. Furthermore, the company is working on finalizing the D&EPC agreement for the Nigeria project, which is expected to enhance the order pipeline significantly.
Headquartered in Mumbai, Sterling and Wilson Renewable Energy Ltd was incorporated in 2007. They are one of the leading end-to-end solar engineering, procurement and construction (EPC) solutions providers globally and are also engaged in the operation and maintenance (O&M) of solar power projects. The company is backed by the strong parentage of Reliance Industries.
Written By Vaibhav Patil
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