Sterlite Electric Powers Ahead with Rs 1,500 Crore IPO

Sterlite Electric, a prominent name in the power transmission sector, has moved forward with plans for an initial public offering (IPO) to raise Rs 1,500 crore. This fund is earmarked to support its growth ambitions and reduce existing debts, as delineated in its recent draft papers submitted to the Securities and Exchange Board of India (Sebi).

The IPO will comprise a fresh issue of 77.9 lakh equity shares and an equal number of shares available through an offer for sale (OFS) by the promoter, Twin Star Overseas Limited, and current shareholders, including Kailash Chandra Maheshwari. The company aims to use the proceeds to prepay part of its Rs 3,485.7 crore consolidated borrowings and invest in capital expenditures, focusing on their Vadodara facility expansion.

With the Indian market for conductors and power cables growing steadily, Sterlite Electric's strategic IPO, backed by Axis Capital and other financial advisors, is positioned as a timely move. The sector's anticipated growth marks a burgeoning opportunity in both domestic and international markets for power transmission and distribution solutions.

(With inputs from agencies.)