Sterling & Wilson Renewable board approves proposal to raise Rs 1500 crore

Sterling & Wilson Renewable Energy stated that the board has authorised a proposal to fund Rs. 1500 crore either through debt or equity. To pay off debt maturing this fiscal year, Sterling and Wilson Renewable Energy Ltd (SWREL) is thinking about selling equity shares.

SWERL has scheduled principal repayment of Rs 1200 crore between September 2023 and March 2024, of which about Rs 770 crore is projected to be paid between September-October 2023. A Reliance Industries-affiliated firm will acquire 40% stock in the power generation company in 2022, while Shapoorji Pallonji and Company Pvt Ltd currently holds an 18.5% interest. In Bombay, its shares finished at Rs 358.

A few months ago, foreign clients invoked two bank guarantees totaling Rs 390 crore, claiming that a project carried out by the company's foreign subsidiaries Sterling and Wilson International Solar FZCO had been improperly executed. According to a stock exchange statement by the company, Sterling argues that the bank guarantees were incorrectly triggered and has taken legal action against the two consumers.

SWREL was required to pay 390 crore by the end of October 2023 since it had provided corporate guarantees for these bank guarantees, which were granted by Emirates National Bank of Dubai. The bank guarantee has been largely honoured by the company, but as of September 1, 2023, about Rs 270 crore has not been paid, according to a report on September 4. On June 30, the company has an order backlog of Rs. 490 crore. It secured two projects totaling Rs 470 crore in the first quarter, one in each of Rajasthan and Uttar Pradesh. Additionally, it received a 600 MW deal worth Rs 1130 crore in August from Gujarat Industrial Power Company.

The company informed the exchange that the issuance of equity shares, global depository receipts, depository receipts, foreign currency convertible bonds, fully or partially convertible debentures, non-convertible debentures, or any other financial instruments convertible into equity shares has been approved by the board of the company.