The stock of the company, which is engaged in solar engineering, procurement and construction business, slipped below its previous low of Rs 260 touched on November 20, 2019.
Shares of Sterling and Wilson Solar slipped to its lowest level since listing, down 9 per cent to Rs 256, on the BSE on Tuesday.
The stock of the company, which is engaged in solar engineering, procurement and construction business, slipped below its previous low of Rs 260 touched on November 20, 2019. It got listed on August 20, 2019.
Previously, between November 13 and November 19, the stock had plunged 42 per cent after the promoters failed to repay loan and requested the company to consider a revised repayment schedule for the balance outstanding amount.
“The company received request from promoters of the company – Shapoorji Pallonji and Company (SPCPL) and Khurshed Y. Daruvala – for revised repayment schedule for the balance outstanding amount due w.r.t. portion of the net offer proceeds of the initial public offering (IPO) of the company to be used for repayment of the outstanding dues from Sterling Wilson Private Limited (SWPL) and its subsidiary Sterling Wilson International FZE (SWFZE),” the company said in a statement.
The company reasoned that the unforeseeable and lesser-than-expected realisation from the IPO led to significant and rapid deterioration in the credit markets, resulting in a significant liquidity crisis. The promoters have outstanding balance amount of Rs 2,341 crore as on September 30, 2019.
The rating agency India Ratings and Research (Ind-Ra) has revised SWSL’s long-term issuer rating of ‘IND AA-’ to ‘rating watch negative (RWN)’ from th previous ‘stable’ rating.
“Ind-Ra expects SWSL to provide clarity on its refinancing plans by the first week of December 2019. Any delay in the refinancing arrangement beyond that will be credit negative,” the agency said.
Source : business-standard
