#SterliteElectric #IPO #DRHP #VedantaGroup #PowerTandD #RenewableEnergy #IndianMarket #CapitalMarkets #OPGW
Chandigarh: Sterlite Electric Limited (formerly Sterlite Power Transmission Limited), a part of the Vedanta Group, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The filing positions the company, a key player in the Power Transmission and Distribution (Power T&D) sector, to capitalize on India’s massive renewable energy integration plans.
IPO Structure and Utilization
The total IPO size comprises the issuance of up to 15,589,174 equity shares.
The net proceeds from the fresh issue are slated for three primary uses:
- Repayment or prepayment of borrowings availed by the company and its subsidiaries.
- Funding capital expenditure requirements.
- General corporate purposes.
Axis Capital Limited, Motilal Oswal Investment Advisors Limited, and Nuvama Wealth Management Limited have been appointed as the Book Running Lead Managers (BRLMs) to the issue.
Business Profile and Market Position
Sterlite Electric is a manufacturer of capital goods and a provider of system integration solutions, specializing in the Power T&D industry for both domestic and international markets.
- Product Portfolio: The company’s core offerings include overhead conductors, power cables, optical ground wire (OPGW), and master system integration (MSI) services.
- Indian Market Share: In Fiscal 2025, the company held a share of the Indian power conductors market by value. It holds an even stronger position in premium products, capturing a to share of the high ampacity and AL59 conductor market in India.
- Global Reach: The company has a significant international footprint, having catered to customers in over 70 countries—including the USA, Brazil, Sweden, and the UAE—between April 2022 and March 2025. Revenue from external customers outside India was ₹10,007.07 million in Fiscal 2025.
The company’s operations are supported by four strategically located manufacturing facilities in Jharsuguda, Piparia, Rakholi, and Haridwar. As of March 31, 2025, the annual installed capacity was 117,195.60 metric tonnes for overhead conductors and 2,400 kilometers for power cables.
Industry Tailwinds and Growth Outlook
The IPO is timed to capitalize on significant structural tailwinds in India’s power sector, as highlighted by a CRISIL Report cited in the DRHP.
- Renewable Integration: India’s transmission sector is expected to undergo massive expansion to integrate 500 GW of non-fossil fuel capacity by 2030. This push—requiring substantial investment in inter-state transmission systems—is expected to benefit large integrated players like Sterlite Electric disproportionately.
- Power Cables Growth: The power cables industry is projected to grow at a Compound Annual Growth Rate (CAGR) of to between FY24 and FY29, driven by investments in transmission, renewable integration, and urban infrastructure.
The company is led by an experienced team, including Managing Director Pratik Agarwal and Chairman Pravin Agarwal, aiming to leverage its execution expertise and technology leadership to strengthen India’s power infrastructure.
#SterliteElectric #IPO #DRHP #VedantaGroup #PowerTandD #RenewableEnergy #IndianMarket #CapitalMarkets #OPGW
