Sterling and Wilson Solar Company doesn’t fulfill the IPO objects:
The Shapooriji Group and Khurshed Yazadi Daruvala are the promoters for the Sterling and Wilson Solar company. And they didn’t fulfill their promises in the IPO releasing time on Aug. Due to the money shortage and unexpected issues in the company. They take more time to refund the credit amount Rs 2,341 crores.
At the ending of Sep, the company takes the loan as Rs 2,259 crores. In the letter written by the promoter to the board, they said they will trying to shrink the amount to Rs 1,000 crores at the time listing on 31st Dec 2019, said by the SWSL in stock exchange filling.
The corporate lawyers and agent rail against the company to situate the investors in the loss. According to the advisors, to varying the refunding schedules is violating the rules of the Security Exchange Board.
The several IPO draft papers prospectus and commitments not satisfied by SEBI, then it takes serious reactions for the companies. The regulators need to enquire where the promoters utilized the amount of the returns from IPO, said by the exports.
On 15th Nov 2019, the management of SWSL said to the investors, the company performing on repayment terms still for the balance amount they didn’t describe the time.
The investors attacked the company in conference call due to doesn’t reveal the date of refunding of IPO Proceeds amount.
According to the Exports Point of View:
The mutual fund house not satisfied with this company because the company doesn’t fulfill its IPO objects and doesn’t inform about changing the schedule of refunds, said by Sanjay Chawla. Mr. Abhinav Bhandari said that The changing of refunds terms is also depression to the small-cap shareholders.
The manager of ICICI Prudential Life Insurence Mr. Shilaaditya Dasgupta said that the management announced the repayment of money based on the share of IPO, and the company doesn’t give any other assurance to the investors.
Daruvala chairman of SWSL said that money shortage of money occurred in the company. And we expecting within 3 weeks or 10 days before we will settle the maximum repayment amount.
There is no need for loans to this company because it has negative working capital and also it is the asset-light business. the Sterling and Wilson solar company divided into EPC and SWSL in April 2017.