Sterling and Wilson Renewable Energy raises Rs 1,500 crore through QIP route
Renewable Energy Limited has raised Rs. 1,500 crore through the qualified institutions placement (QIP) route.
The bulk of the proceeds from the QIP will be used to pare down debt furthermore providing us capital to pursue the fast-growing solar EPC markets in India and abroad, the company said in a statement, adding that the QIP witnessed a strong response from both domestic mutual funds and global FIIs.
“The last couple of months have been challenging for us as an organization and the successful completion of the QIP is a significant moment in our journey," said Amit Jain, Global CEO, Sterling and Wilson Renewable Energy.
The company had missed scheduled payments to lenders this September it faced a liquidity crisis triggered by the invocation of two bank guarantees.
Shapoorji Pallonji and Company Pvt Ltd holds an 18.5% stake in the company and Reliance Industries, through a subsidiary, holds 40% equity.
The company said it’s unexecuted order book as of September 30th, 2023, continues to remain healthy at Rs 6,835 crore aided by strong domestic EPC order inflows with a growing bid pipeline in both India and abroad.
«Through this QIP, we are more strategically positioned to harness the immense potential of the renewable energy market, globally,» the company said, adding that the Securities Issuance Committee of the Board of Directors at its meeting held on December 14th, 2023 approved the issue and allotment of 4.3 crore equity shares of face value Re 1/- each to eligible qualified institutional buyers at the issue price of Rs 347/- per equity share (including the premium of Rs. 346/- per equity share).
On Thursday, the company's share price closed at Rs 424.10, down 0.14% on the BSE.
