Sterling and Wilson Solar dives 5% despite promoters announcement to sell two SPVs to repay loans

Adani Green Energy has signed a share purchase agreement for the acquisition of a 100% stake in two SPVs holding 74.94 MW operating solar projects of Sterling & Wilson.

Mar 24, 2021 01:03 IST India Infoline News Service

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Sterling and Wilson Solar has announced that promoters Shapoorji Pallonji and Company Private Limited (“SPCPL”) and Khurshed Daruvala have announced an agreement with Adani Green for the sale of two SPVs to repay outstanding loans.

Sterling and Wilson in its regulatory filing stated that promoters vide their letter dated March 24, 2021, have informed the Company that SWPL has entered into a Share Purchase Agreement on March 23, 2021, with Adani Green Energy Limited w.r.t disposal of 100% shareholding held by SWPL in 2 SPVs. The enterprise valuation of the 2 SPVs is Rs446cr.

"SWPL will receive net sale consideration of about Rs250cr and the entire amount of the net sale proceeds will be utilized towards repayment of part of the Outstanding Loans due to the Company," Sterling and Wilson said.

Promoters in their letter to the board of directors of Sterling and Wilson dated March 24, 2021, said, "We had taken time till September 2021 to facilitate repayment of the entire Outstanding Loans and have put into action multiple plans to achieve the same. We are confident of earlier phased repayments of which Rs250cr is the first step in that direction. We appreciate your continued support and are confident of fulfilling our commitment despite this challenging environment."

Last year, these promoters sought an extension of time till September 2021, to facilitate the repayment of the Outstanding Loans and acceptance of the security offered by the Promoters on various assets aggregating to approx. Rs1,200cr against the same.

Adani Green Energy has signed a share purchase agreement for the acquisition of a 100% stake in two SPVs holding 74.94 MW operating solar projects of Sterling & Wilson, a Shapoorji Pallonji group company.

At around 1.21 pm, Sterling and Wilson are trading at Rs300.35 per piece down by 4.7% on Sensex.

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