Board of Sterling and Wilson Renewable Energy to meet on Sept 27 for fundraise, ET EnergyWorld

[ad_1]

The board of Sterling and Wilson Renewable Energy Ltd (SWREL) will meet on September 27 to consider a proposal to raise funds, the company informed the stock exchange today.

The company has said that the board will meet to consider and evaluate a proposal for raising funds by issuance of bonds or equity. It would consider any other securities such as preferential issue on a private placement basis, qualified institutions placement, rights issue or a combination of these, the notice said

ET reported on September 6 that Sterling and Wilson is considering an equity share sale to repay debt maturing this fiscal year. The company is considering an option to raise Rs 1500 crore from qualified institutional investors, ET reported.

The power generating company, wherein a Reliance Industries-linked entity has picked up 40% equity in 2022, had payment obligations of ₹1,000 crore by December 2023, according to a rating report by Acuite dated August 29.

The fundraising aims to make SWREL a debt-free company, thus improving its valuation. The company has a market cap of ₹6800 crore, and its shares closed at ₹358, down 1.08% over the previous day at the Bombay Stock Exchange.

A few months ago overseas clients invoked two bank guarantees amounting to Rs 390 crore, alleging improper execution of a project undertaken by its overseas subsidiary Sterling and Wilson International Solar FZCO. Sterling claims that the bank guarantees were wrongfully invoked and initiated legal action against the two customers, according to a stock exchange disclosure by the company.

SWREL had extended corporate guarantees towards these BGs, which were issued by Emirates National Bank of Dubai, and thus, it is obligated to pay ₹390 crore by the end of October 2023.

  • Published On Sep 23, 2023 at 09:15 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETEnergyworld App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App


[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *