Shapoorji Pallonji Group, the 150-years-old privately held conglomerate, is planning to make its first initial public offering with a Rs 4,500 crore issue of arm Sterling & Wilson Solar. The IPO may hit the capital market by the third quarter of FY20.
The $8.1 billion Shapoorji Pallonji Group, which has run most of its businesses privately, is exploring various ways to unlock value and deleverage the balance sheet, as it faces rising cost pressures and sluggish sales volumes. The IPO of Sterling & Wilson Solar, the group’s solar power engineering, procurement, and construction (EPC) business, could be the first on this front. The issue is an offer for sale by the company’s promoters and chairman, Khurshed Daruvala.
Daruvala told, “Proceeds from the issue will be used by the promoters to capitalize the parent company, which can, in turn, repay the loans it has taken from Sterling & Wilson Solar, making it a zero-debt company. Getting listed will also help us in enhanced bank limits and better brand recognition.”