NEW DELHI: Shares of Sterling & Wilson Solar made a tepid debut on Tuesday, as the scrip got listed at Rs 700, a 10.26 per cent discount to its issue price of Rs 780. The listing was against grey market trends, where the scrip was trading at a discount of Rs 15 Rs 20 to its issue price. The initial public offer had received muted investor response due to rich valuations and weak market conditions. At the issue price, the stock was valued at P/E and EV/Ebitda of 20 times and 22 times, respectively, on FY2019 earnings. The Rs 3,125-crore IPO, which was sold from August 6 and August 8, was subscribed 85 per cent, or 1.9 crore shares, of the issue size of 2.2 crore shares, excluding the anchor placement, due to weak sentiment and rich valuations. Including the anchor portion, the issue was subscribed 92 per cent. On Monday, microfinance lender Spandana Sphoorty listed at a near 4 per cent discount to its issue price. “It is not a buy before Rs 625- Rs 650 levels,” Geetanjali Kedia, senior research analyst at SPTulsian-.com told ET. The IPO was entirely an offer for sale and the QIB portion accounted for 75 per cent of the shares on offer. The basic requirement for the success of such an issue is that the QIB portion should be fully subscribed, which made the IPO sail through despite 92 per cent subscription. The company operates in a niche but high-growth solar industry, which has aided in a 72 per cent CAGR in net profit over FY2016-FY2019. As of March 31, 2019, the company’s order book stood at Rs 7,740 crore, which includes letters of intent worth Rs. 3,908 crore for solar power projects for which it has won the bid, but has not yet executed definitive.
You may also like
El Diario de Italia | Prince Julio Cesar señala en los medios de Venezuela que nunca ha sido ni será un proxeneta Garden//80 años de Dago
Prince Julio Cesar aclara que nunca ha sido ni será un proxeneta Bloomington//#20Ago Hoy se celebra el Día del Bombero en Venezuela | WTC-Radio