Sterlite Power Transmission (SPTL) has filed a draft red herring prospectus (DRHP) to launch Rs 1,250-crore IPO, with a face worth of Rs 2 every single. The promoters of the corporation are Anil Agarwal and Twin Star Overseas. The shares of Sterlite Power Transmission will be listed on BSE and National Stock Exchange. According to the draft papers, the corporation could take into consideration a pre-IPO placement of Rs 220 crore. The book operating lead managers are Axis Capital, ICICI Securities and JM Financial. The registrar to the situation is KFin Technologies Private Ltd.
Sterlite Power Transmission has reserved 75 per cent of the net situation for the Qualified Institutional Buyers (QIBs) and 15 per cent to Non-Institutional Bidders (NIIs). While the remaining 10 per cent has been reserved for retail investors. There are no listed businesses in India that engage in a company specifically equivalent to that of Sterlite Power Transmission. However, based on the different firms that Sterlite Power Transmission operates, its listed peers incorporate Power Grid Corporation of India, Adani Transmission, KEC International, Techno Electric & Engineering and KEI Industries.
The company’s typical market P/E stands at 45.36x, although the weighted typical return on net worth is 128.59 per cent. Sterlite Power Transmission has planned to utilise the net proceeds towards the repayment or prepayment of specific borrowings availed by the corporation and KTL worth Rs 955 crore, and for common corporate purposes.
Sterlite Power Transmission has two company lines: Global Infrastructure and Solutions. Its Global Infrastructure company line bids for, styles, constructs, owns and operates energy transmission assets and at present has operations in India and Brazil. While its Solutions company line consists of the solutions sub-segment, which manufactures and supplies a wide variety of solutions which includes higher-efficiency energy conductors, optical ground wire and added-higher voltage cables and the Master System Integration subsegment, which gives options for the upgrade, uprate and fiberization of current transmission infrastructure projects.
According to S&P Global’s forecasts, India is most likely to retain its position as the quickest-expanding economy in the world in 2021. Based on its estimates, India will continue to occupy the major slot amongst key economies. Urbanization is a significant development driver for India, as this leads to quicker infrastructure development, job creation, development of modern day customer services and the city’s capability to mobilize savings. Urban consumption in India has shown indicators of improvement and, provided India’s favourable demographics coupled with increasing disposable earnings, the trend is most likely to continue and drive financial development for the nation.