Shares of Sterling & Wilson Renewable Energy Ltd shot up 9.40% on Tuesday’s Early Trades to reach an intraday high of ₹ 327.55 apiece on the National Stock Exchange (NSE) after the company announced that it has bagged an order worth ₹ 2,100 crores.
Its shares were trading at ₹ 323.65 apiece, up 8.10% at 12:35 PM on Tuesday. A whopping 1,74,109 shares changed hands on the bourses as compared to merely 17,663 shares on Monday. Reliance New Energy Limited had invested in the company and currently holds a 40% stake in it, while the Shapoorji Pallonji group holds a 20.93% stake in it.
In an exchange filing, the Sterling & Wilson Renewable Energy said that it has emerged as a successful bidder for the balance of system (BOS) package comprising four blocks of 300 MW in the proposed 1200 MW Solar PV Project of NTPC Renewable Energy Limited at Khavda RE Power Park, Rann of Kutch, Gujarat. The total bid value, including operations and maintenance for three years, will be ₹ 2100 crores. It added that the NOAs (Notice of Action) and contract signing is likely to happen in due course.
Backed by the strong parentage of the Shapoorji Pallonji Group, Sterling and Wilson is a small-cap company with a market capitalization of ₹ 5,679 crores. It is among the leading end-to-end solar engineering, procurement and construction (EPC) solutions providers globally and is also engaged in the operation and maintenance (O&M) of solar power projects.
The company has narrowed its consolidated net loss to ₹ 99.15 crore during the October to December quarter of 2022 (Q3 FY23) against a net loss of ₹ 428.78 crores reported in the corresponding quarter last year. Its total income came at ₹ 417.65 crores in Q3 FY23 compared to ₹ 1,502.23 crore during the corresponding period of the previous year.
The Reliance Group’s investment in the company led to the strengthening of its balance sheet and increased confidence in customers, suppliers, bankers and other stakeholders.
In a recent investor presentation, the company said that the industry witnessed significant consolidation and stronger players are expected to take a larger share of the market in the future. In addition, the solar industry is well poised to grow in the long term as Independent
Power Producers (IPPs) have huge plans for capacity additions. Moreover, global tariffs have already corrected upwards and a lot of projects are expected to get finalized in FY23.
Written by Simran Bafna
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