Promises are not meant to be broken, scream Sterling and Wilson Solar investors
The ink on Sterling and Wilson Solar Ltd’s (SWSL’s) initial public offering (IPO) share allotment certificates isn’t even dry yet and investors are having to grapple with a tweak in the terms and conditions.
When the company’s promoters, Shapoorji Pallonji and Co. Pvt. Ltd and Khurshed Y. Daruvala, set out to raise ₹4,500 crore by selling a part of their stake in the IPO, the stated plan was that part of the proceeds would be used to clear the loans they had taken from SWSL. But less than three months since the company’s shares listed, there is a change in plans, with an extension being sought for the loans.
The upshot: SWSL’s shares have fallen 36% in the past two trading sessions, and are now trading nearly 60% lower compared to the IPO price of ₹780 per share.
