Dull Response To IPO Of World’s Largest Pure-Play Solar EPC

- Advertisement -
  • Sterling & Wilson had initially planned to offer 22.17 million shares
  • It managed to garner bids for just 19 million shares
  • The initial estimates of the IPO size of around US$650 million have now been revised to around US$450 million

The initial public offer of the world’s largest solar EPC company has failed to attract the interest of retail investors in its host country of India.

Representative image

VCCircle recently reported that Sterling & Wilson Solar Limited was forced to reduce the size of its IPO following poor response from retail investors. The company had initially planned to offer 22.17 million shares, excluding the anchor portion, but managed to garner bids for just 19 million shares. As a result, the initial estimates of the IPO size of around US$650 million have now been revised to around US$450 million.

According to various media reports, only qualified institutional buyers oversubscribed the shares earmarked. The portion earmarked for large non-institutional was subscribed up to 90 per cent. However, the real disappointment came from the retail investors where the earmarked portion was subscribed up to just 30 per cent. Retail investors are the small individual investors that are allowed to bid up to US$2,900.

- Advertisement -

Possible reasons for poor performance
The fact that small retail investors were hesitant to invest in a company that has virtually no listed competitors (several infrastructures and power companies listed in India do offer EPC services but not as a core business) indicates the challenges, and perhaps lack of understanding on part of retail investors, that renewable energy business face in India.

Another important factor that played part in the poor performance of the IPO was the general economic slowdown and consumption slump in India. This slowdown has been mirrored aptly in the performance of major indices in India that has slumped sharply from their all-time highs.

Around 75 per cent of the company’s business comes from markets outside India. This does insulate the company from some of the challenges being faced by the Indian renewable energy companies still, the retail investors did not find the IPO attractive.

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

“AIC-T-Hub Aims To Grow Startups So More Indian Unicorns Can Contribute To The GDP”

0
T-Hub has collaborated with Atal Incubation Centre (AIC), initiated by the Atal Innovation Mission to incubate semiconductor startups, fostering innovation for India’s advancement in...

Pros And Cons: Boult’s Varun Gupta On Contract Electronics Manufacturing

0
While contract electronics manufacturing is not a new concept in India, it has lately picked up a pace never seen before. But what has...

Buzz

NVIDIA Record $26B Q1 Revenue, Announces Stock Split And Dividend Hike

0
The quarterly cash dividend has been raised by 150%, resulting in $0.01 per share on a post-split basis. NVIDIA reported first-quarter revenue for the period...

ASUS IoT And BRESSNER Technology Launch CTOS

0
The collaborative approach seamlessly integrates advanced features across CTOS solutions, fostering synergy. ASUS IoT has recently unveiled a strategic collaboration with BRESSNER Technology, aiming to...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Important Sectors

Renault Kwid, Maruti eVX: 15 Upcoming EVs Under ₹10 Million (1 Crore) In India

0
Should you wait or buy an electric car from the existing options in India? Well, that’s a question only you should answer! However, if...

Commercial EV Finance: Empowering Younger Companies To Drive Growth

0
While electric three-wheelers have emerged as the face of EV adoption in India, startups engaged in their retail need increased access to finance for...

Samsung Appoints Veteran Amid AI Chip Challenges

0
This shake-up, effective immediately, sees Young Hyun Jun transitioning from his role in future business planning to tackle the booming demand for high-end AI...

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

Manufacturing

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...