Solar EPC Company Sterling & Wilson Repays ₹10 Billion in Outstanding Loan

The outstanding loan amount stands at ₹16.44 billion as of December 31, 2019


Sterling and Wilson Solar Limited, the solar engineering and construction arm of the Shapoorji Pallonji Group, has paid ₹10 billion in dues (~$140.18 million) of its outstanding loan.

This payment consists of the principal amount and the interest from the date of listing of the company’s shares in August until December 31, 2019.

The company finalized the repayment schedule based on the recommendations of the audit committee, the board of directors, in a meeting held on December 31, 2019.

As per a Bombay Stock Exchange (BSE) filing, the outstanding loan of ₹25.63 billion (~$359.3 million) due from Sterling and Wilson Private Limited and Sterling and Wilson International FZE as on the date of the listing of shares on the stock exchanges now stands at ₹16.44 billion (~$230.4 million).

The promoters of the company have also proposed the repayment of the outstanding dues in a phased manner. The company will repay ₹5 billion (~$70.09 million) of the outstanding balance before March 31, 2020, and another ₹5 billion (~$70.09 million) by June 30, 2020. The remaining balance amount will be paid by September 31, 2020.

According to the BSE filing, the company’s debt from the date of the listing of the company’s shares until December 31, 2019, has now reduced by a net amount of ₹13.4 billion (~$187.84 million). The company has also paid an interest of ₹680 million ($9.53 million) on such external debt during the said period.

In November 2019, the company announced the results for the second quarter (Q2) and the first half (1H) of the financial year (FY) 2020, which ended on September 30, 2019. The revenue posted from operations amounted to ₹24.28 billion (~$338.35 million), and the company posted a net profit of ₹ 1.25 billion (~$17.47 million) for 1H of FY 2020.

But things are not going all that well for the company. In November, the promoters of the company, Shapoorji Pallonji Group and Yazdi Daruvala, requested a revised payment schedule for the loans worth ₹23.41 billion (~$325.5 million) citing “significant and rapid deterioration in credit markets.” The outstanding amount stood at ₹25.63 billion (~$356.3 million) with the principal amount of ₹23.35 billion (~$324.6 million) and the interest amount of ₹2.28 billion (~$31.7 million) as of August 20, 2019, the day the company went public.

The company later clarified that the amounts mentioned in the letter dated November 14, 2019, were for two different dates and the amount of ₹23.41 billion (~$325.5 million) was only after taking into account the repayment of ₹2.5 billion (~$34.7 million) from the date of listing to the end of first half of FY 2020.

The company has been making inroads in strategic markets like Australia and the US Currently. The company claims that it has nearly 8.8 GW of solar EPC projects as part of its portfolio in different stages of implementation.

In August last year, the company floated its initial public offering (IPO) targeting to raise ₹31.25 billion (~$442 million). The price band for the IPO was slated at ₹775 ($11.10) (floor price) to ₹780 ($11.17) (cap price).

Previously, it was reported that the company had won an engineering, procurement, and construction (EPC) bid to develop a 1,177 MW solar project in Sweihan in the Emirates of Abu Dhabi.

The company also bagged a 1.09 GW project in Saudi Arabia, which has strengthened its position in the Middle East and North Africa (MENA) region. The company says it’s also the largest solar EPC solutions provider in Africa and the Middle East, with a market share of 36.6% and 40.4%, respectively.


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