Sterlite Power Transmission Ltd IPO
Sterile Power is one of the leading private sector power transmission infrastructure developers and solutions providers. It operates in India and Braz...
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Last Updated: 09 December 2022 10:57 AM by 5Paisa
Sterlite Power Transmission (SPTL) has filed a draft red herring prospectus (DRHP) to launch Rs 1,250-crore IPO. The proceeds from the issue will be used to repay debt of the firm and its arm Khargone Transmission Ltd (KTL). As of March, the amount outstanding under its fund-based and non–fund-based working capital and term loan facilities was Rs.7,323.99 crore. Axis Capital, ICICI Securities and JM Financial are lead managers to the issue. The company may consider a pre-IPO placement aggregating up to Rs 220 crore.
Objective of the Issue
The proceeds from the issue will be used to repay debt of the firm and its arm Khargone Transmission Ltd (KTL)
Sterile Power is one of the leading private sector power transmission infrastructure developers and solutions providers. It operates in India and Brazil. The company develops integrated power transmission infrastructure and provides solution services through two business units: Global Infrastructure and Solutions.
It is largest private player in terms of project portfolio under the inter-state TBCB route, with a market share of 26% of transmission projects awarded through the TBCB route and according to Brazilian Electricity Regulatory Authority ("ANEEL"), it has a 13% market share of the transmission projects auctioned by ANEEL in the period January 2017-June 2021.
The firm develops integrated power transmission infrastructure and provide solution services through two business units: Global Infrastructure and Solutions. The Global Infrastructure business unit has a global focus, with operations currently in India and Brazil, bids for designs, constructs, owns and operates power transmission assets while the Solutions business unit consists of the products sub-unit, which manufactures and supplies a wide range of products including high performance power conductors, optical ground wire ("OPGW") and extra-high voltage ("EHV") cables, and the Master System Integration ("MSI") sub-unit, which provides bespoke solutions for the upgrade, uprate and fiberzation of existing transmission infrastructure projects
The company’s strategy of monetising past operational and partially operational project, has enabled them to generate means of capital rotation, grow its capital and maintain an asset light balance sheet.
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Revenue |
2,092.39 |
3,004.32 |
3,555.01 |
|
EBITDA |
1,831.77 |
2,277.01 |
323.36 |
|
PAT |
870.12 |
942.97 |
-524.80 |
|
EPS (basic in Rs.) |
142.22 |
154.13 |
-85.78 |
|
ROE |
68% |
235% |
97% |
|
ROCE |
36.68% |
40.22% |
1.97% |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Total Assets |
6,754.27 |
9,145.72 |
12,267.17 |
|
Share Capital |
12.24 |
12.24 |
12.24 |
|
Total Borrowings |
2,781.49 |
6,978.11 |
6,292.07 |
|
Particulars (in Rs. Crores) |
FY21 |
FY20 |
FY19 |
|
Net cash generated from / (used in) operating activities |
553.31 |
-727.08 |
-620.78 |
|
Net cash from / (used in) investing activities |
2,033.51 |
285.00 |
-2,036.25 |
|
Net cash flow from / (used in) financing activities |
-2,104.15 |
811.14 |
3,002.91 |
|
Net increase (decrease) in cash and cash equivalents |
482.67 |
369.06 |
345.88 |
Peer Comparison -
|
Name of the company |
Total Revenue (in Rs. crores) |
Basic EPS |
NAV Rs. per share |
PE |
RoNW % |
|
Sterlite Power Transmission Limited |
3,816.96 |
142.22 |
207.85 |
NA |
68.42% |
|
Listed Peers (Power Transmission Business) |
|||||
|
Power Grid Corporation of India Ltd |
40,823.53 |
23.01 |
133.68 |
7.66 |
17.21% |
|
Adani Transmission Ltd |
10,458.93 |
9.02 |
81.1 |
157.1 7 |
14.46% |
|
Listed Peers (Power Transmission EPC) |
|||||
|
KEC International Ltd |
13,144.12 |
21.5 |
130.68 |
19.88 |
16.45% |
|
Techno Electric & Engineering Company Ltd |
956.08 |
16.53 |
146.93 |
18.62 |
11.25% |
|
Listed Peers (Power Product Manufacturing) |
|||||
|
KEI Industries Ltd |
4,201.60 |
30.47 |
197.88 |
23.47 |
15.38% |
Strengths
1. Leadership position in the Indian power transmission sector, achieved through established processes and technology to identify and execute high margin projects.
2. Track record of executing complex projects successfully, with the use of technology and innovative solutions.
3. An integrated player offering solutions across the entire transmission infrastructure value chain, with high growth potential for its Solutions and Convergence business units.
4. High ROCE and an efficient capital structure with access to multiple funding sources.
5. Purpose driven organization, with a strong focus on ESG.
6. Highly experienced Board, management and technical team.
Risks
1. 11 Ongoing Projects that are under construction and development can face substantial risks, including various planning, engineering and construction risks.
2. Failure in identifying or correcting defects or irregularities in the title to the land which it owns or intend to acquire for its projects.
3. Operates in a highly competitive environment, and increased competitive pressure could deteriorate their ability to successfully bid for projects and execute their growth strategy.
4. The company’s business is subject to sectoral regulators and strict policy regimes.
5. Delays in obtaining, or a failure to maintain, governmental approvals and permits required to construct and operate its projects.
6. Changes in technology may render its current technologies obsolete or requires substantial capital investments.
7. Subjected to performance risk from third-party contractors, and operational risks associated with the engagement of third-party contractors and its employees.
8. Expansion plans require significant financial, management and other resources.
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FAQs
Sterlite Power Tranmission IPO details are yet to be announced.
Sterlite Power Tranmission IPO details are yet to be announced.
Sterlite Power Tranmission IPO details are yet to be announced.
The IPO comprises a fresh issue of Rs 1,250 crore.
Sterlite Power is promoted by Agarwal and Twin Star Overseas.
Sterlite Power Tranmission IPO details are yet to be announced.
Sterlite Power Tranmission IPO details are yet to be announced.
Axis Capital, ICICI Securities and JM Financial are lead managers to the issue.
The proceeds from the issue will be used to repay debt of the firm and its arm Khargone Transmission Ltd (KTL).
To apply for the IPO, follow the steps given below
1. Login to your 5paisa account and select the issue in the current IPO section.
2. Enter the number of lots and price at which you wish to apply for.
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange.
4. You will receive a mandate notification to block funds in your UPI app.