Offer for Sale of 4,00,64,102 shares by Promoters aggregating upto Rs. 3,125 crs
Objects of the Issue
To achieve the benefits of listing
Enhance visibility and brand image of the company
The proceeds from the offer will go to promoters, offering their shares for issue
ABOUT THE COMPANY
Sterling and Wilson Solar Ltd (SWSL) was originally incorporated at Mumbai on March 9, 2017 as Rashmika Energy Private Limited
It had commenced operations in 2011 as the Solar EPC Division of Sterling and Wilson Private Limited (SWPL), and was subsequently demerged in 2017
Over a span of seven years, SWSL became one of the largest solar EPC solutions provider in India, Africa and the Middle East according to IHS Markit in 2018
THE BUSINESS
SWSL is a end-to-end solar engineering, procurement and construction (“EPC”) solutions provider, and is world’s largest solar EPC solutions provider in 2018 based on annual installations of utility-scale photovoltaic (“PV”) systems of more than five mega-watt peak (“MWp”), according to IHS Markit
SWSL provide EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning
SWSL has impressive commissioned and contracted portfolio of 205 solar power projects with an aggregate capacity of 6,870.43 MWp
Some of SWSL’s Key Projects being :
Single location solar power plant of 1177 MWp in Abu Dhabi
580 MWp solar power plant in Rajasthan, India
22.32 MWp solar power project in Philippines
VALUATION
SWSL post issue is available at a PER of 19.60x FY19. It enjoys high return ratios, ROE being 76.13. It is an asset light business model. FY19 posted impressive operating and net profit growth boosted by higher operating efficiencies and leverage. It’s outstanding order book stands Rs.3,831 crores. Given, the Government’s impetus on renewable energy and few domestic companies available for catering to its rising demand; SWSL looks sweetly poised to reap on the benefits. Government of India has set a target of 225GW of power generation from renewable energy by 2022, which presently is at 70GW. A major business opportunity for EPC players and power producers. Given, the visibility and financials, SWSL’s is likely to re-rated post listing. We recommend subscribe.
Posted by Mehul Kothari | Published on 05-AUG-2019
ISSUE HIGHLIGHTS
Issue Size of 1,40,29,622 shares which consists of offer for sale of 93,56,725 shares by investors and the Promoters amounting to Rs. 800 crores and a fresh issue of approximately 46,72,897 shares of around Rs. 400 crores. In aggregate upto 1,201 crs will be raised.
Proceeds from fresh issue will be utilised towards
Augmenting capital base
General corporate purposes
SHAREHOLDING PATTERN
COMPANY HIGHLIGHTS
Spandana is a leading, rural focused NBFC-MFI, having dominant business presence in AP and Telangana.
Spandana was incorporated as a public company in 2003 and registered as an NBFC with the RBI in 2004. Subsequently, company got registered as NBFC-MFI in 2015.
Through customer centric loan products, Spandana endeavoured to strengthen the socio-economic well-being of low-income households.
Product portfolio of Spandana comprises of following offerings:
Abhilasha (JLG Loans)- Abhilasha stands for “Aspiration”. This unique loan is designed especially for low-income households.
Loans Against Property (LAP)- Sometimes big ideas need small help, thus Spandana has designed Loan Against Property scheme for low income home buyers.
Phinix Loans- Women empowerment being centric. Spandana designed special financing facility for women of Andhra Pradesh who already have an income generating source.
Shree Loans- Shree stands for “Good Beginning”, this loan is given to low/lower-middle-income people having clear credit history.
Gold Loans (Keertana)- They also provide ‘Gold Loans’ are given against the mortgage of Jewellery.
Interim Loans- Spandana has working capital offering under the name of ‘Interim loans’ to assist borrowers to meet their liquidity requirements.
VALUATION
Spandana is a well diversified rural focussed NBFC. It enjoys decent return ratios. Post issue at upper band of issue price of Rs.856 it’s P/BV stands at 2.40x (ttm basis). Loan book has grown at a Cagr of 27% for past 5 years. For FY19 its advances grew at 38% yoy basis. Assuming, the company delivers similar growth in foreseeable future, the issue is fairly priced.)
Posted by Mehul Kothari | Published on 07-AUG-2019
MARKET RECAP
Finally some respite for the bulls was observed in yesterday’s session as the market underwent a decent pullback amid the weak global cues. The index Nifty spot started the session with a downside gap indicated by the SGX NIFTY but recovered sharply as the day progressed. At one point of time it went above 11000 mark and gained around 150 points. Eventually, it closed with a gain of around 85 odd points at 10948. Meanwhile, NIFTY BANK index too ended with gains of 1.35%.
Right from the beginning of the session, market breadth remained in the favor of advancing counters. On the sectoral front, apart from NIFTY MEDIA (-1.18%) and NIFTY IT (-0.02%) all the other group indices closed in positive terrain. Form the pack of gainers, NIFTY REALTY (1.76%) and NIFTY PVT BANK (+1.59%) stocks were the top performers. From the F&O pack, DHFL (+35.4%), SRF (+15.9%) and IBULHSGFIN (+8.7%) outperformed others.
OUTLOOK
In our previous report we mentioned about the hammer formation on the daily chart of nifty spot which had a high of around 10900. Yesterday the index started the session near 10820 and recovered sharply to clear the hammer. Post that strong short covering was observed. Nifty registered an intraday high of 11018 and closed well below the same. We initiated a positional buy recommendation in NIFTY FUT around 10940 with a stop of 10790 for the upside target of around 11200. Of this, we have already booked partial profits at 11040.
In today’s session, once the index start with a downside one should wait for some buying traction in order to go long. We would assess the conditions and initiate a trade for short term traders. Aggressive buy can be now be above yesterday high of 11018 in spot. BANKNIFTY spot has a strong resistance at 28150. Fresh buy above the same. On the downside support is at 27750 below which selling could resume.
DERIVATIVE OUTLOOK
In index futures, FIIs remained bearish by adding shorts in index futures.
Prop traders turned bullish by writing PE options.
As per the options data, support has shifted to 10,800 due to PE concentration. On the upside, 11000 could be strong hurdle now since we witnessed huge OI built up of around 2.2 million shares in 11000 CE option.
Securities in BAN: - -.
RESULTS TODAYDisclaimer
)
Sterling and Wilson Solar IPO 2019 – Issue Details, Balance Sheet & Company Highlights
ISSUE HIGHLIGHTS
ABOUT THE COMPANY
THE BUSINESS
VALUATION
SWSL post issue is available at a PER of 19.60x FY19. It enjoys high return ratios, ROE being 76.13. It is an asset light business model. FY19 posted impressive operating and net profit growth boosted by higher operating efficiencies and leverage. It’s outstanding order book stands Rs.3,831 crores. Given, the Government’s impetus on renewable energy and few domestic companies available for catering to its rising demand; SWSL looks sweetly poised to reap on the benefits. Government of India has set a target of 225GW of power generation from renewable energy by 2022, which presently is at 70GW. A major business opportunity for EPC players and power producers. Given, the visibility and financials, SWSL’s is likely to re-rated post listing. We recommend subscribe.
Previous Story
Spandana Sphoorty Financial Ltd. IPO 2019 – Issue Details, Balance Sheet & Company Highlights
ISSUE HIGHLIGHTS Issue Size of 1,40,29,622 shares which consists of offer for sale of 93,56,725 shares by investors and the Promoters amounting to Rs. 800 crores and a fresh issue of approximately 46,72,897 shares of around Rs. 400 crores. In aggregate upto 1,201 crs will be raised. Proceeds from fresh issue will be utilised towards Augmenting capital base General corporate purposes SHAREHOLDING PATTERN COMPANY HIGHLIGHTS Spandana is a leading, rural focused NBFC-MFI, having dominant business presence in AP and Telangana. Spandana was incorporated as a public company in 2003 and registered as an NBFC with the RBI in 2004. Subsequently, company got registered as NBFC-MFI in 2015. Through customer centric loan products, Spandana endeavoured to strengthen the socio-economic well-being of low-income households. Product portfolio of Spandana comprises of following offerings: Abhilasha (JLG Loans)- Abhilasha stands for “Aspiration”. This unique loan is designed especially for low-income households. Loans Against Property (LAP)- Sometimes big ideas need small help, thus Spandana has designed Loan Against Property scheme for low income home buyers. Phinix Loans- Women empowerment being centric. Spandana designed special financing facility for women of Andhra Pradesh who already have an income generating source. Shree Loans- Shree stands for “Good Beginning”, this loan is given to low/lower-middle-income people having clear credit history. Gold Loans (Keertana)- They also provide ‘Gold Loans’ are given against the mortgage of Jewellery. Interim Loans- Spandana has working capital offering under the name of ‘Interim loans’ to assist borrowers to meet their liquidity requirements. VALUATION Spandana is a well diversified rural focussed NBFC. It enjoys decent return ratios. Post issue at upper band of issue price of Rs.856 it’s P/BV stands at 2.40x (ttm basis). Loan book has grown at a Cagr of 27% for past 5 years. For FY19 its advances grew at 38% yoy basis. Assuming, the company delivers similar growth in foreseeable future, the issue is fairly priced.)
Next Story
Share Market Today - 7th August 2019
MARKET RECAP Finally some respite for the bulls was observed in yesterday’s session as the market underwent a decent pullback amid the weak global cues. The index Nifty spot started the session with a downside gap indicated by the SGX NIFTY but recovered sharply as the day progressed. At one point of time it went above 11000 mark and gained around 150 points. Eventually, it closed with a gain of around 85 odd points at 10948. Meanwhile, NIFTY BANK index too ended with gains of 1.35%. Right from the beginning of the session, market breadth remained in the favor of advancing counters. On the sectoral front, apart from NIFTY MEDIA (-1.18%) and NIFTY IT (-0.02%) all the other group indices closed in positive terrain. Form the pack of gainers, NIFTY REALTY (1.76%) and NIFTY PVT BANK (+1.59%) stocks were the top performers. From the F&O pack, DHFL (+35.4%), SRF (+15.9%) and IBULHSGFIN (+8.7%) outperformed others. OUTLOOK In our previous report we mentioned about the hammer formation on the daily chart of nifty spot which had a high of around 10900. Yesterday the index started the session near 10820 and recovered sharply to clear the hammer. Post that strong short covering was observed. Nifty registered an intraday high of 11018 and closed well below the same. We initiated a positional buy recommendation in NIFTY FUT around 10940 with a stop of 10790 for the upside target of around 11200. Of this, we have already booked partial profits at 11040. In today’s session, once the index start with a downside one should wait for some buying traction in order to go long. We would assess the conditions and initiate a trade for short term traders. Aggressive buy can be now be above yesterday high of 11018 in spot. BANKNIFTY spot has a strong resistance at 28150. Fresh buy above the same. On the downside support is at 27750 below which selling could resume. DERIVATIVE OUTLOOK In index futures, FIIs remained bearish by adding shorts in index futures. Prop traders turned bullish by writing PE options. As per the options data, support has shifted to 10,800 due to PE concentration. On the upside, 11000 could be strong hurdle now since we witnessed huge OI built up of around 2.2 million shares in 11000 CE option. Securities in BAN: - -. RESULTS TODAYDisclaimer )