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Sterlite Power Transmissions IPO

Sterlite Power Transmission has filed for a Draft Red Herring Prospectus (DRHP) for its IPO valued at Rs. 1250 crore. JM Financial, Axis Capital and ICICI Securities are the lead managers for the issue. Sterlite Power Transmission Limited may consider a pre-IPO transaction worth Rs. 220 crores.

About Sterlite Power Transmissions Limited

Sterlite Power Transmissions Limited is a top solutions provider and power transmission infrastructure developer in the private sector, founded by billionaire Anil Agarwal. The company operates in India and Brazil. Sterlite Power Transmissions Limited commenced its operations in 2006 as a part of Sterlite Technologies limited transmission grid business division. The business was demerged and evolved as a separate company in 2016. The company expanded its operations to Brazil the following year. The company offers solution services primarily through Global infrastructure and solutions. Sterlite Power Transmission Limited has become the most prominent project portfolio under the TBCB route, with a market share of 26% of transmission projects awarded through the TBCB route.

Moreover, the company has a 13% market share of the transmission projects auctioned by the Brazilian Electricity Regulatory Authority (ANEEL) from January 2017 to June 2021, as per ANEEL. The company’s Global infrastructure business unit conducts operations in India and Brazil, owns and operates power transmission assets and bids for designs. The solutions unit comprises the products sub-unit, which manufactures and supplies an extensive range of products ranging from extra high voltage cables (EHV), high-performance power conductors, Master System Integration (MSI) and optical ground wire (OPGW).

Sterlite Power Transmissions Limited IPO Objectives

The proceeds will be directed toward the following:

  1. Repaying debt availed by Sterlite Power Transmissions and Khargone Transmission Ltd (KTL). Note that the net value of Sterlite Power’s fund-based and non-fund-based loans is Rs. 7323.99 crores in terms of outstanding working capital and term loan agreements.
  2. General Corporate Purposes.

Why should you invest in Sterlite Power Transmissions Limited IPO?

Here are some of the pivotal reasons you should invest in the Sterlite Power Transmission IPO

  1. Sterlite Power Transmissions Limited is a top solutions provider and power transmission infrastructure developer in the private sector.
  2. The power transmission industry in India has high growth potential. The demand for electricity in densely populated Indian cities is expected to rise from end-use electrification.

How to apply for Sterlite Power Transmissions Limited IPO?

You may apply for the IPO through a Demat account or UPI. The following steps will guide you toward applying for Sterlite Power Transmission Limited IPO using UPI.

  1. Your UPI ID must be linked to your bank account.
  2. Open a Demat account and link it with your UPI.
  3. Register for Sterlite Power Transmissions Limited IPO and make the payment through your UPI ID.

Sterlite Power Transmissions Limited’s Pros & Cons

Pros Cons
The company manages complicated tasks successfully using new ideas and the latest technology. The company is known to be unable to recognise or correct irregularities and defects in the title of property it holds to plans to purchase.
The company identifies and executes several high-margin projects by implementing well-established procedures and technology. The company owns 11 active projects through the construction, engineering and planning stages, which can be risky.
Sterlite Power Transmission generates a high ROI and a lean capital structure with many investment options. Competitive markets may risk the company’s ability to win future projects.
The company shows tremendous potential for its convergence business segments and solutions. Third-party contracts pose performance and operational risks for the company.
Sterlite Power Transmission has a significant focus on ESG. Sterlite Power Transmission risks delays in procuring and maintaining government licences to run its projects.
The company’s board, management and staff all have the technical expertise. Changing technology may render the company’s current technology obsolete or may require substantial capital investments.

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Sterlite Power Transmissions Limited IPO FAQs

Sterlite Power Transmissions Limited filed for a DRHP in August to raise Rs. One thousand two hundred fifty crores through an IPO.

The details are currently unavailable.

The details are currently unavailable.

The details are currently unavailable.

The details are currently unavailable. However, the Sterlite power grey market price is running stable currently.

Sterlite Power IPO date will be ten working days from the last day of subscription to list stocks on exchanges.

You may check the allotment status by logging into the BSE or NSE website. You may also visit the IPO register’s website to know the status. You may require your PAN number, DP number and application ID while checking the allotment status. Additionally, you may follow Sterlite Power IPO news to stay updated with the company’s latest information and announcements.

There is no warranty that the shares will list in gain. Sterlite Power IPO price will depend on factors such as short-term outlook, demand for IPO, and other global factors.

The bank blocks funds only when you apply. The amount will be debited from your account once the shares are allotted to you, or they may unblock it on the UPI mandate expiry date.

Yes, you can modify the application, however, only till the IPO is open for subscription. Also, once you have accepted the UPI mandate further changes cannot be done.

No, you can submit only one application using your PAN card.

Pratik Agarwal has been the group CEO of Sterlite Power Transmissions since 2016.

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