Stake Sale by Sterling and Wilson Renewable Energy Promoters
Sterling & Wilson Renewable Energy, a notable player in the renewable energy sector, has witnessed significant changes in its ownership structure following a strategic stake sale executed by its promoters, Shapoorji Pallonji Group and Khurshid Yazdi Daruwala. This move is poised to reshape the company’s dynamics and attract further investment in the growing renewable energy market.
Details of the Stake Sale
In a recent open market transaction, the promoters sold a total of 7.14% of their stake in Sterling & Wilson Renewable Energy for approximately Rs 1,040 crore. According to data from the National Stock Exchange (NSE), Shapoorji Pallonji & Company Pvt Ltd divested 1.35 crore shares, which corresponds to a 5.78% stake in the company. Alongside, Khurshid Yazdi Daruwala sold 31.50 lakh shares, representing an additional 1.35% stake.
The shares were transacted within a price range of Rs 623.28 to Rs 630.01 each, leading to a total transaction value nearly reaching Rs 1,039.88 crore.
Changes in Promoter Holdings
Following this stake sale, the ownership structure has undergone a marked transformation. Shapoorji Pallonji & Co’s stake in Sterling & Wilson Renewable Energy has decreased from 12.73% to 6.95%. Concurrently, Daruwala’s stake has plummeted from 1.48% to just 0.13%. Overall, the cumulative shareholding of the promoters and their group has fallen from 52.91% to 45.77%, indicating a significant reduction in control. This shift in ownership may open doors for new strategic alliances and investments that could bolster the company’s future growth.
New Investors on Board
Interestingly, several prominent financial institutions have taken advantage of this share divestment. Morgan Stanley, Societe Generale, and Citigroup Global Markets Mauritius acquired a total of 66 lakh shares, amounting to 2.83% of the company. These shares were purchased at an average price of Rs 623 each, resulting in a combined investment of approximately Rs 411.18 crore. This influx of investment from reputable firms demonstrates growing confidence in Sterling & Wilson’s potential within the renewable energy sector.
Company Profile and Market Performance
Sterling & Wilson Renewable Energy is recognized as an end-to-end provider of renewable energy solutions, specializing in engineering, procurement, and construction (EPC) services for utility-scale solar and energy storage systems. The company is also exploring opportunities in floating solar and hybrid energy solutions to address the ever-evolving energy needs of the market.
As of now, the company’s stock price closed at Rs 649.60, reflecting a 1% gain on the Bombay Stock Exchange (BSE) on Friday, September 27. Over the past year, the share price has surged by an impressive 82%, indicative of the strong demand for renewable energy solutions and the company’s robust operational performance.
Conclusion
The recent stake sale by the promoters of Sterling & Wilson Renewable Energy marks a pivotal moment for the company. With adjusted ownership stakes and new institutional investors entering the fray, the company is well-positioned to capitalize on the growing demand for renewable energy. The future looks promising as it continues to innovate and expand its service offerings in an increasingly competitive landscape.
