The shares of this green energy company hit a 5 percent upper circuit after exclusive reports suggested the possibility of the company launching a QIP worth Rs 1,500 crore.
On Wednesday’s early trade, Sterling and Wilson Renewable Energy Ltd touched 5 percent upper circuits of Rs 388.25 per share. The company has a market capitalization of Rs 7,367 crore.
As per the CNBC TV 18 report, Sterling & Wilson Renewable Energy Ltd. is likely to launch a Qualified Institutional Placement (QIP) to raise Rs 1,500 crore as early as next week, The proceeds from the issue are likely to be utilized in the repayment of the company’s debt.
As per the company’s report, Sterling and Wilson Solar Solutions, Inc (SWSS), the US step-down subsidiary signed an MOU with the Government of the Federal Republic of Nigeria, along with its consortium partner Sun Africa in September 2022.
MOU is for the development, design, construction, and commissioning of solar PV power plants aggregating 961 MWp at five different locations in Nigeria along with battery energy storage systems (BESS) with a total installed capacity of 455 MWh.
Sterling & Wilson Renewables is in the process of finalizing terms of a $2.2 billion order that its Joint Venture has been awarded by the Nigerian Government.
Sterling and Wilson Renewable Energy shares have gained 23 percent in the last six months and 35 percent in a year.
Reliance Industries is a significant shareholder in the firm. Reliance Industries Ltd, backed by billionaire Mukesh Ambani, has purchased a 40% stake in Sterling and Wilson Renewable Energy Ltd (SWREL) for Rs 2,845 crores in the fiscal year 2021-2022.
The firm received new orders of Rs 2,640 crore in the most recent quarter, including key orders from NTPC, GIPCL, and Engie. As of September 30, 2023, while net debt amounted to Rs 2,123 crore.
In Q2FY24, Operations and Maintenance (O&M) accounted for 6.7 percent of the company’s revenue. O&M margins have begun to recover and are now approximately 23 percent.
The company’s revenues have increased by 143 percent year on year from Rs 312 crore in Q2FY23 to Rs 759 crore in Q2FY24, while net losses have declined from a loss of Rs 298 crore to a loss of Rs 54 crore.
Sterling and Wilson Solar Ltd is one of 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.
Written by Omkar Chitnis
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