Anil Agarwal’s company Sterlite Power Transmission Limited (SPTL) is going to bring IPO. The company has filed the initial document i.e. DRHP with SEBI for its IPO. Under the IPO, new shares worth Rs 1250 crore will be issued. Vedanta Chief Anil Agarwal and Twin Star Overseas are the promoters of Sterlite Power Transmission Limited. This IPO can come in the market by the end of this year. However, its issue size has been reduced from Rs 2000 crore to Rs 1200 crore.
10% reserved for retail investors
75% of the IPO is reserved for Qualified Institutional Buyers (QIBs). 15 percent share has been kept in reserve for NII. Only 10 per cent is reserved for retail investors. The company has said that it will also give some shares to the employees, but it has not been told in the DRHP that how much share has been reserved for them. The company can also bring 220 crore pre-IPO placements.
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Second largest company after POWERGRID
Sterlite Power Transmission Limited has appointed Axis Capital, ICICI Securities and JM Financial as lead managers for the book running of its IPO. Sterlite Power manufactures products used in power generation. It is also in the business of power transmission. It is the second largest power transmission company after POWERGRID. It is ahead of Adani Transmission and Essel Group in terms of market share.
The debt burden on Vedanta Limited is very high. The company has raised $ 1.4 billion by pledging its stake. The company will use this amount to repay its debt, whose redemption is nearing. Vedanta said that its promoters have raised a debt of $1 billion by issuing notes of the same amount to Citicorp International. In addition, a unit of Vedanta Resources will issue notes of $400 million to an entity under Oaktree Capital Group.