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ramya Bhaskaran made post

Will Sterling and Wilson Solar Ltd IPO have the potential to hit the capital market? Should I subscribe?

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12 months ago

yes, I think it has a potential to grow

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Ira Shah answered.
12 months ago

Sterling and Wilson Solar (SWSL) is one such popular player in Engineering, Procurement and Construction (EPC). SWSL is a subsidiary company of the Shapoorji Pallonji Group,

Date of initial public offering (IPO) subscription is 6th August 2019.
The price band of Rs. 775-780 per share. The closing date of the IPO is on 8th August 2019. A minimum lot to bid is 18 equity shares.

Aim of the company is to build nearly Rs 3,125 crore through the IPO.
The primary objective of the IPO is to repay loans and advances that is due to the company.
Through the IPO The company is offering upto 4.03 crore shares (offer-for-sale) through the IPO.
One of the positive strength of the company is the strong market leadership built through strategic expansion of overseas operations.

However, there are few points that may ask you to think before you subscribe to this IPO. The lowering pace in the global economic expansion has resulted in a decrease in demand for solar EPC service. Also, if you refer its history of growth the company fails to maintain constant profitability margins.

I would ask you to study the market closely and compare all the pros and cons of the IPO subscription that do not put you in any risk. Lastly, as per my knowledge and market analysis, this IPO can yield good returns for long term investment.