Sterlite Power state perk share issue, IPO expected e-o-y

Sterlite Power Transmission Ltd
September 2, 2022

IPO- bound Sterlite Power Transmission (SPTL) blazoned a perk issue in the rate of 11 when it declared its earnings for the fiscal time 2021- 22. For the financial time ended on March 31, 2022, the power transmission player’s net profit halved to Rs440.14 crore compared to the former time. It had clocked a net profit of Rs869.77 crore in FY2020- 21.

The Vedanta NSE-1.16% Group arm’s nethermost line was downsized as charges further than doubled in the said period. Still, it clocked a 150 per cent rise in the profit from operations to Rs 5,197.48 crore in FY22 from Rs 2,092.39 crore in the former financial time.

Following the advertisement of results and perk issue, shares of Sterlite Power Transmission were trading at Rs1,300 in the unrecorded request, as against Rs 900- 950 earlier. Still, the stock has fallen from Rs1,600-1,650 many months ago as the company was unfit to launch its original public immolation, whose nod will expire in December this time. That said, dealers from the unrecorded request are positive on the stock over IPO buzz, strong demand for power, cheap valuations, business expansion and issue of perk shares.

Divyanshu Aggarwal, Director, Growfast Securities and Credit said the company has shown robust growth in their regular business, including manufacturing and exporting of operators, optic fibre and creating networks for telecom players.

” The EPC constricting business has gained a lot of strength and magnet and a 150 per cent increase in the top line without the trade of any transmission design is a major achievement,” the Delhi- grounded dealer said. Aggarwal believes that Sterlite Power shouldn’t be treated as a traditional power transmission company as its gaining instigation as a service provider for EPC contracts, creating optic fiber networks, confluence business and consulting business.

Sterlite Power Transmission Ltd

The company may float its IPO by November this time at a valuation close to Rs10,000 crore and the price band is likely to be in four integers post perk. Pratik Agarwal, Managing Director, SPTL said the timing of the share trade would depend upon request demand and valuation along with other fundraising options available to the company at the time.

The company is likely to hold its periodic general meeting (AGM) on September 26 and the record date to determine the eligibility of perk shares is October 5. The company would file a revised DRHP with Sebi, sources added. Jasbir Singh, MD & Founders of Pune- grounded establishment Meera Capital and Securities, which deals in unrecorded and pre-IPO shares, is positive on the stock and expects encashment of systems from October this time.

still, we may see a profit of over to Rs 8,000 crore in coming 2- 3 times,” If the company’s systems are complete by the given timeline.” There are strong growth prospects in the coming time to boost its performance.” still, not everyone is gung-ho on the counter.

Dinesh Gupta, co-founder, Unlisted Zone, another Delhi- NCR- grounded pre-IPO consultancy, said that investors should conduct a thorough study despite the rising demand for the power sector. ” The IPO is delayed over the valuation enterprises, which are likely to persist in the coming days. The request may not give the anticipated valuations indeed this time,” he added.