MUMBAI: Sterling and Wilson Solar Ltd’s initial public offering (IPO) will test investor appetite for large issues.
After receiving an approval to raise ₹4,500 crore, the promoters of the company have decided to sell shares worth ₹3,125 crore.
At the higher end of the price band of ₹780, the price-to-earnings ratio works out to about 20 times FY19 earnings. As such, there are no direct listed peers for Sterling and Wilson in India. Nonetheless, these valuations are similar to Larsen and Toubro Ltd (L&T), and significantly higher than KEC International Ltd, both of which derive sizeable overseas revenues from EPC (engineering procurement and construction) work, although from different sectors.
