NEW DELHI: Shapoorji Pallonji-led Sterling and Wilson Solar’s (SWSL) Rs 3,125 crore IPO will hit the market on Tuesday. Analysts said the firm, a leader in the solar EPC space, is well placed to capitalise on the opportunities from the solar power sector and thereby they have given ‘subscribe’ ratings to the issue from a long-term perspective.
The IPO comprised entirely of an offer for sale of 4.01-4.03 crore shares. Its main objective is to carry out disinvestment by the promoter, and SWSL will not receive any proceeds from the offer. The issue is priced at Rs 775-780 per share.
At the upper end of the price band of Rs 780, the issue seems fairly priced at a P/E of 19.6 times (post dilution) on FY19 consolidated basis, said Centrum Broking. The company has no domestic listed peer.
Strong parentage, asset-light business model and low capex requirements work in favour of the company. SWSL is also a leading solar EPC solutions provider in India, Africa and Middle East with 16.6 per cent, 36.6 per cent and 40.4 per cent market share, respectively, according to IHS Markit.
“SWSL operates in a niche but high-growth solar indust