2024-10-02 07:00:04 :
Mumbai: Sterling and Wilson Renewable Energy (SWRE) chairman Khurshed Daruvala said his family will not exit the company and the stake he sold last week was to fund another investment to resolve Sterling and Wilson The group’s debt woes.
Shares of EPC (engineering, procurement and construction) companies in the solar industry have plunged nearly 8% in the past two sessions after promoters Daruvala and Shapoorji Pallonji and Company Pvt. Ltd. (SPCPL) sold approximately 7.14% of its shares $Rs 1,040 crore secured through block trades. Daruvala sells 3.15 million shares for less than 3.15 million shares $200 crore, according to Bloomberg data.
“I see huge potential for solar EPC in India. The fact that, plus my wife’s stake, we own about 5.7% of the company makes Sterling and Wilson Renewable energy companies became our most valuable household investments. I see. “It’s a long-term investment in one of the most exciting industries.”
BSE shareholding data shows that Daruvala’s wife Kainaz holds 5.57% stake in the listed company.
ALSO READ | Stirling and Wilson Renewables raises capital $Rs 1,500 crore secured through QIP
Daruvala said the stake sale was to fund investment in Sterling & Wilson Data Centre, a new company that acquired the data center EPC business from Sterling and Wilson (S&W) in a sluggish sale.
BSE shareholding data shows that Daruvala’s wife Kainaz holds 5.57% stake in the listed company.
S&W is a privately held company engaged in mechanical, electrical and plumbing (MEP) services and transmission and distribution (T&D). Its promoters include the Daruvala family and SP Group.
S&W sells its data center EPC business to group of investors to fund $Debt of Rs 7.5 billion was repaid in March this year. The business is housed in a new company renamed Sterling and Wilson Data Centre. Investors put conditions on Daruwala to invest at least $In his personal capacity, he invested 2 billion rupees in the new company as a means of performance guarantee.
To fund the investment, Daruwala sold his stake in SWRE.
debt crisis over
Daruvala said the deal marked the end of S&W’s debt crisis. While the sale of the data center business helped the privately held company settle its debt, publicly traded Southwest Real Estate also gained a stronger footing.
In 2022, the latter sold 40% stake to Reliance Industries Ltd (RIL) through primary and secondary transactions to raise funds. further improved $1,500 crore to be raised through qualified institutional placement (QIP) route in December 2023.
Daruwala said: “The dark clouds have lifted. This is the last equity sale needed to resolve the Sterling & Wilson group’s debt crisis. The SWRE issue was resolved when we did the QIP last year.”
ALSO READ | These solar companies are gearing up for initial public offerings. Will they shine?
Today, the S&W Group consists of four companies: listed SWRE, private S&W with MEP and T&D businesses, Sterling and Wilson Data Center and Sterling Generators.
Analysts at Anand Rathi expect SWRE to rise amid the government’s push for renewable energy and Reliance Industries’ solar ambitions. Analysts pointed out that Reliance Industries plans to install 100GW of renewable energy generation capacity by 2030, most of which will be through solar power. This may translate into a business opportunity $Assuming a 50% share for outsourced work, SWRE will reach $1.1 trillion in fiscal 2026-31.
and read | India’s renewable energy boom hampered by vague regulation of sales agreements
Follow us On Social Media   Twitter/X
