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Promoters of Sterling and Wilson Solar under pressure by proxy advisory firm

A Sterling and Wilson solar park. (Photo: Business Wire)

January 13 (Renewables Now) - Proxy advisory firm InGovern Research Services is putting pressure on the promoters of Sterling and Wilson Solar Ltd (BOM:542760) to provide an exit option for minority shareholders who have invested in the Indian company’s initial public offering (IPO).

InGovern said in a research report released last week that the promoters’ inability to repay certain loans has led to a loss of more than 60% in investment value for investors in the IPO.

Shriram Subramanian, founder and managing director of InGovern commented that the promoters, namely the Shapoorji Pallonji Group, are now suffering a huge loss of reputation.

“In order to redeem this reputation, the SP group should provide an exit option for public minority shareholders. This is a demand from minority shareholders and SEBI should force the promoters to provide an exit option for minority shareholders,” InGovern says in the research report.

In turn, the SP group, through Shapoorji Pallonji and Company Pvt Ltd, completely denied the information given in the report.

“We would like to reiterate that this entire report is malicious, misleading, defamatory and without any attempt to ascertain the facts of the matter from us. The sensationalism in this report is more an attempt to further erode investor wealth rather than its stated objective of working in the interests of the investors,” the promoters said, adding that they are now evaluating their legal options.

You can read the full research report here and Shapoorji Pallonji’s answer here.

As of December 31, 2019, solar engineering, procurement and construction (EPC) firm Sterling and Wilson Solar has received just INR 10 billion (USD 141.3m/EUR 127m) out of INR 25.63 billion worth of loans that were supposed to be repaid within 90 days of the listing. Shapoorji Pallonji has sought a restructuring of the repayment schedule for the balance.

(INR 10 = USD 0.141/EUR 0.127)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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