Sterling and Wilson Solar Ltd board approves preferential issue and stake sale by promoters

The Board of Directors of Sterling and Wilson Solar Limited ("Board"), at its meeting held today i.e. Sunday, October 10, 2021, has approved the preferential issue and noted the stake sale by promoters.

Subject to the approval of the shareholders of the Company at their extraordinary general meeting and such other regulatory/ government approvals as may be required, the Board has approved the issuance of 2,93,33,333 equity shares of face value of ₹ 1/- each ("Equity Shares") at a price of ₹ 375/- per Equity Share aggregating to ₹ 1,099,99,99,875/- (Rupees One thousand ninety nine crore ninety nine lakh ninety nine thousand eight hundred and seventy five only) representing 15.46% of the post preferential issue paid-up equity share capital of the Company, to Reliance New Energy Solar Limited ("RNESL"), a whollyowned subsidiary of Reliance Industries Limited, a non-promoter group entity, for cash consideration, on a preferential basis ("Preferential Issue")

In relation to the Preferential Issue, the Board has also approved and parties have executed a share subscription agreement amongst the Company, Shapoorji Pallonji and Company Private Limited and Mr. Khurshed Daruvala ("Current Promoters") and RNESL ("SSA"), under which, the Company has agreed to undertake the Preferential Issue, subject to the terms and conditions as set out in the SSA.

Further, the Board has also taken note of the share purchase agreement entered into among Shapoorji Pallonji and Company Private Limited and Mr. Khurshed Daruvala ("Current Promoters") and RNESL ("SPA"), in terms of which, the Current Promoters have agreed to sell 1,84,00,000 Equity Shares ("Tranche 1 Sale Shares") and additionally such number of Equity Shares ("Remaining Sale Shares") to ensure that RNESL holds at least 40.00% of the post preferential issue paid-up equity share capital of the Company after considering the shares acquired in the Preferential Issue, the Tranche 1 Sale Shares and the Equity Shares acquired in the Open Offer to be made by RNESL to the public shareholders of the Company.

Reliance New Energy Solar Limited is seeking to acquire an aggregate of 40% (forty percent) of the post preferential issue paid-up equity share capital of the Company, through a combination of (i) the preferential allotment; (ii) acquisition of shares in the open offer; and (iii) secondary purchases from Shapoorji Pallonji and Company Private Limited and Mr. Khurshed Daruvala (in one or more tranches) in terms of the SPA dated October 10, 2021 among Shapoorji Pallonji and Company Private Limited, Mr. Khurshed Daruvala and Reliance New Energy Solar Limited.

Reliance New Energy Solar Limited will have the right to nominate 2 (two) individuals on the Board of the Company and the current promoter and promoter group shall have a right to nominate 2 (two) individuals on the Board of the Company.

Shares of Sterling And Wilson Solar Limited was last trading in BSE at Rs. 434.80 as compared to the previous close of Rs. 405.10. The total number of shares traded during the day was 522414 in over 13561 trades.

The stock hit an intraday high of Rs. 444.00 and intraday low of 405.75. The net turnover during the day was Rs. 224195679.00.

Shares of Sterling And Wilson Solar Limited was last trading in NSE at Rs. 435.05 as compared to the previous close of Rs. 404.85. The total number of shares traded during the day was 5678632 in over 86489 trades.

The stock hit an intraday high of Rs. 444.25 and intraday low of 405.20. The total traded value during the day was Rs. 2444092863.00.

Source : Equity Bulls

Keywords

SterlingAndWilsonSolar PreferentialIssue FundRaising RIL StakeSale INE00M201021 SWSOLAR RenewableEnergy