Sterling and Wilson share price hits 5% upper circuit on QIP launch

livemint.com:

₹443.85 in early trade on BSE on Tuesday, December 12, a day after the company announced the launch of a qualified institutional placement (QIP) issue. The securities issuance committee of Sterling and Wilson Renewable Energy authorized the opening of the issue on Monday, December 11, 2023. Shares of the company jumped 5 per cent on Monday.

The company's securities issuance committee set the floor price for the QIP at ₹365.02 per share. The company intends to use the funds raised through the QIP for debt reduction. According to a CNBC-TV18 report, Sterling & Wilson Renewable Energy is likely to raise to ₹1,500 crore through the QIP.

Meanwhile, in a BSE filing on December 11, the company said that a meeting of the securities committee is scheduled to be held on December 14, 2023, to consider and approve the issue price of the equity shares to be issued pursuant to the QIP, for the shares to be allotted to qualified institutional buyers. Sterling and Wilson Renewable Energy share price has jumped about 49 per cent in the last one year with stellar gains in November and December this year. After three months of losses, the stock surged 27 per cent in November and has gained over 31 per cent in December so far.

The company reported a consolidated net loss of ₹54.51 crore for the September quarter of the current financial year (Q2FY24), showing a significant improvement from the ₹299 crore loss in Q2FY23 and the ₹95 crore loss in Q1FY24. The company's revenue surged 149 per cent year-on-year (YoY) to ₹760 crore in the September quarter. In the same quarter of the previous year, the company reported revenue of ₹313 crore, and in the preceding June quarter, it recorded revenue of ₹515 crore.