Sterlite Electric Files for IPO with ₹1,558 Crore Fresh Issue and OFS
Sterlite Electric Ltd., a Vedanta Ltd. subsidiary, has filed for an IPO. The offering includes a fresh issue to raise ₹1,558 crore and an offer for sale by existing shareholders. Twin Star Overseas Ltd., holding 69.46% stake, is the main promoter in the OFS. Funds will be used for debt repayment (₹350 crore), capital expenditure (₹225 crore), and general corporate purposes. Sterlite Electric, with four manufacturing facilities in India, serves over 70 countries, specializing in overhead conductors, power cables, and optical ground wire solutions. The company reported ₹3,486 crore in outstanding borrowings. Axis Capital, Motilal Oswal Investment Advisors, and Nuvama Wealth Management are managing the IPO.
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Sterlite Electric Ltd., a subsidiary of Vedanta Ltd., has taken a significant step towards going public by filing an application for an Initial Public Offering (IPO). The proposed IPO structure includes both a fresh issue of shares and an offer for sale (OFS) by existing shareholders.
IPO Structure
The company plans to issue new equity shares through a fresh issue, aiming to raise approximately ₹1,558 crore. Additionally, existing shareholders will offer shares for sale as part of the OFS component.
Major Selling Shareholder
Twin Star Overseas Ltd., which currently holds a 69.46% stake in Sterlite Electric, has been identified as the primary promoter participating in the OFS.
Utilization of IPO Proceeds
The funds raised from the fresh issue are earmarked for several key purposes:
- Debt Repayment: ₹350.00 crore
- Capital Expenditure: ₹225.00 crore for expansion of the Vadodara facility
- General Corporate Purposes: The remaining amount
Company Overview
Sterlite Electric operates four manufacturing facilities across India and serves customers in over 70 countries. The company specializes in:
- Overhead conductors
- Power cables
- Optical ground wire solutions
As of the filing, Sterlite Electric reported outstanding borrowings of ₹3,486.00 crore.
IPO Management
The following merchant bankers have been appointed to manage the IPO:
- Axis Capital
- Motilal Oswal Investment Advisors
- Nuvama Wealth Management
Investors and market watchers will be closely monitoring the progress of Sterlite Electric's IPO application as it moves through the regulatory process.
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