Sterling and Wilson Solar surges 20% on heavy volumes

Trading volumes on the counter jumped over four-fold with a combined 1.3 million equity shares changing hands on the NSE and BSE
Shares of Sterling and Wilson Solar soared 20 per cent to Rs 235.90 on the BSE on Wednesday on the back of heavy volumes after Shapoorji Pallonji Group agreed to exit Tata Sons and called for separation.

At 10:18 am, the stock was trading 16 per cent higher at Rs 228.70 on the BSE, as against 0.56 per cent rise in the S&P BSE Sensex. Trading volumes on the counter jumped over four-fold with a combined 1.3 million equity shares changing hands on the NSE and BSE till the time of writing of this report.

In a late evening statement, the Mistry family said a separation from the Tata group was necessary due to the potential impact that the ongoing litigation may have on livelihoods and the economy. The Mistry family owns 18.37 per cent in Tata Sons and is its largest minority shareholder. CLICK HERE TO READ FULL REPORT

According to analysts the proceeds received by SP group after exiting Tata group could be used to repay debt the former owes to Sterling and Wilson Solar. Last week, Shapoorji Pallonji group missed a deadline to repay dues to Sterling and Wilson Solar Ltd.

"The promoters have repaid only Rs 103 crore of the Rs 1,000 crore it owed to the company, the deadline for which ends this month," Sterling and Wilson had said in an exchange filing. Promoters will repay the rest of the dues by September 2021, it added. READ MORE

Sterling and Wilson Solar, a Shapoorji Pallonji group company, is a global pure-play, end-to-end solar engineering, procurement and construction (EPC) solutions provider. Shapoorji Pallonji and Company Private Limited held 50.58 per cent stake in the company at the end of June quarter.

Sterling and Wilson Solar has so far won orders worth Rs 5,696 crore, more than half of its last year's order inflow. Order inflow of 1.0 GW amounting to Rs 3,633 crore from April 2020 until June 2020 i.e. 40 per cent of FY20 order inflow, the company said.

The management said the revenues for Q1FY21 got impacted as work at projects suffered disruptions, due to the world wide pandemic and resultant lockdown on account of Covid-19. However, construction activities have recently commenced at majority of project sites and the company is now operating at efficiencies of around 80-85 per cent, which would be gradually getting ramped up to 100 per cent in due course. The management is therefore confident that H2FY21 would transform the overall financial outlook for the year, leading to an anticipated revenue growth over the last financial year.

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