Sterling and Wilson Solar company-owned by Shapoorji Pallonji :
The Sterling and Wilson Solar company is a part of Shapoorji Pallonji Company. In August 2019, the company launched its IPO with an initial price of Rs 775 to Rs 780.
When the IPO subscription period, the loss prevented only by the QIBs. Even the shares offered for Rs 780, on 20th August, the issue closed with a 7% loss as compared to the offering price.
After 3 months, the investors realized, the shares do not have any value, because already 50% of stocks of dropped.
The reason behind the situation, the supporters have forgotten the objective they given in the IPO draft papers. They utilize the IPO money for another company.
At present, they want to introduce an addition to this IPO with Rs 4,500 crores. The Shpoorji Pallonji and Khurshed Yazdi Daruvala are the supporters for this IPO.
According to some of the advisors, the mistake obtained due to the wrong valuation by the merchant bankers. But the remaining advisors said only investors responsible for the changes in the company. And the investors should know about the company before trading on IPO.
One of the experts said, the iBanker should examine the prospects and How the IPO following the rules and should decide the cost of the issue.
And also, iBanker needs to confirm the prospectus in the draft papers submitted to the SEBI were perfect or not should reveal to the public.
ICICI Securities, Axis Bankers, Credit Suisse, Deutsche Equities India, IIFL Holdings and SBI Capital Market act as the global coordinator as well as the lead managers for this company. IndusInd Bank and Yes Securities act as the lead managers for this company.
According to the experts report:
As per the SEBI norms, the merchant bankers need to revel their last 3 years’ work experience report. It was taken as the standards fo the merchant bankers.
The merchant banker needs to revel the features of the market regulator, the number of shares assigned to the iBanker, investors requests send to the company IPO, collected requests count, the collected amount from requests, returning money to the investors, book of accounts from past 3 years, and agreement with the company.
The investors trading on any company needs to take a decision form their advisors.
In March 2019, the promoters are in debited Rs 1,935 crores for the Sterling and Wilson company. It was declared in the draft paper. But, also the investor still interested in the IPO subscription.
Disclaimer: This article just from the expert’s reports. It does not grant any advice or direction to invest. Please study the proposal paper thoughtfully and consult your adviser before investing.