SEBI puts Sterlite Electric’s IPO in abeyance
The company plans to raise Rs.1,500 crore for expansion
The Securities and Exchange Board of India (SEBI) has put on hold the proposed initial public offer (IPO) of Vedanta Group firm Sterlite Electric Ltd, without specifying any reason for it.
Sterlite Electric (formerly Sterlite Power Transmission) had filed its draft red herring prospectus (DRHP) with the market regulator early this month.
The proposed IPO comprised a fresh issue of 77.9 lakh equity shares and an offer for sale (OFS) of an equal number of shares by the promoter and existing shareholders.
Under the offer, promoter Twin Star Overseas Ltd, along with existing shareholders Kailash Chandra Maheshwari, Jacob John G, and Ramguru Radhakrishnan, were to offload the shares.
The draft papers stated that the net proceeds from the fresh issue would be used to repay debt, fund capital expenditure for expansion, including the purchase of new plant, machinery, equipment and general corporate purposes.
Sterlite hopes to allocate funds from the proceeds towards expansion at its Vadodara, Gujarat, facility. The investment would be spread over fiscal 2027.
In FY 2025, Sterlite reported Rs.4,956 crore revenue from operations. This was higher than Rs.4,918 crore in the previous fiscal.
Sterlite manufactures capital goods and provides system integration solutions for the power transmission and distribution sector, catering to domestic and international markets.