Sterling and wilson solar ipo has been launched to subscribe on 6th august with an intention to raise Rs.3125 crore from capital market. The company has fixed the issue price band at Rs.775-780 per share
According to market reports the ipo is expected to be in demand in the coming 3 days. The brokerage advised to subscribe the offer that consist of an offer for sale by promoters Shapoorji Pallonji and Company Private Limited (Rs 2,083.33 crore) and Khurshed Yazdi Daruvala (Rs 1,041.67 crore).
I think the key reasons which backed the recommendations to subscribe for the issue is that SWSL has the dominant position in the solar EPC market , asset light business model, providing strong revenue visibility, strong parentage of shapoorji pallonji and other strong financials.
The factors which fascinates me to subscribe for this issue is that the company revenue graph is at upward stage that means company’s revenue is growing regularly, not only this but SWSL is the largest player in the solar segment right now and the government as we can see taking major and crucial decisions to promote solar energy in country that indirectly or directly will benefit SWSL in future as well, this shows that the company has strong potential in the future
Now the point came whether the retail investors should invest in this offer or not, I would recommend the investors to invest in this issue for long period of time only, in my opinion the price of share is quite high but that will matter only when the investor is intended to make profit on the opening day because there might be a chance that the issue might open on discount but there is not such a problem for long term investors because it is a surety that the company will going to make an upward graph in their working and in their financials.
According to Company’s drhp, company has applied for public offering for the repayment of loans that will eventually reduce the debts and will provide more space to work efficiently.
So, in conclusion we can say that the company financials and growth prospect is really impressing and the investors can invest their money without having any second thought because the background of the company is really strong, when a company has a parentage of shapoorji pallonji it indicates the dominancy of that company in the segments they are working.