17 Aug , 2021 By : Kanchan Joshi
Billionaire and Vedanta Resources Chairman Anil Agarwal-led Sterlite Power Transmission has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (Sebi) to raise upto Rs1,250 crore through an initial public offering (IPO).
The initial share-sale will see sale of equity shares aggregating up to Rs1,250 crore by the company, according to draft red herring prospectus (DRHP). The offer will include a reservation of shares for employees of the company.
Proceeds of the IPO will be used for payment of certain borrowings availed by the company and Khargone Transmission Limited (KTL). The company may consider a pre-IPO placement aggregating up to Rs220 crore. If such placement is completed, the issue size will be reduced, as per the draft papers.
Axis Capital, ICICI Securities and JM Financial have been appointed as lead managers to the issue. Shares of the company will be listed on leading stock exchanges BSE and NSE.
Sterlite Power, the electricity transmission infrastructure firm, part of Vedanta group, has two business lines, global Infrastructure and solutions and is promoted by Agarwal and Twin Star Overseas. The power company takes and handles power transmission projects and electric line projects in India.
The global infrastructure business line bids for, designs, constructs, owns and operates power transmission assets and currently has operations in India and Brazil. Whereas, the solutions business line consists of the products sub-segment, which manufactures and supplies a wide range of products including high performance power conductors, optical ground wire and extra-high voltage cables; and the master system integration sub-segment, which provides solutions for the upgrade, uprate and fiberisation of existing transmission infrastructure projects.
Also, the company operates the convergence business line, which leverages existing power utility infrastructure for telecommunications purposes by building optical fibre infrastructure on top of existing utilities networks.
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