Sterling & Wilson Renewable board green signals Rs 1,500 crore fund raise proposal

28 Sep 2023 , 10:30 AM

Sterling & Wilson Renewable Energy’s board of directors authorized a proposal to raise Rs 1,500 crore in debt or equity on Wednesday, according to a filing with the exchanges.

SWERL has scheduled a Rs 1,200 crore main repayment between September 2023 and March 2024, with roughly Rs 770 crore anticipated to be paid between September and October 2023, according to a statement made by ratings firm IndiaRatings and Research.

Shapoorji Pallonji and Company Pvt Ltd owns an 18.5% stake in the power generation firm, with a Reliance Industries-linked business acquiring a 40% shareholding in 2022.

Company’s foreign clients invoked two bank guarantees totaling Rs 390 crore a few months ago, citing faulty execution of a project conducted by its foreign subsidiaries Sterling and Wilson International Solar FZCO. According to a stock exchange statement by the company, Sterling argues that the bank guarantees were wrongfully invoked and has launched legal action against the two clients.

SWREL extended corporate guarantees in relation to these bank guarantees granted by Emirates National Bank of Dubai, and as a result, it is obligated to pay Rs 390 crore by the end of October 2023.

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