Promoters of Sterling and Wilson Solar pledge shares to raise capital

The promoters of Sterling and Wilson Solar have further pledged their shares in the company for raising capital from financial lenders. Kainaz Daruvala, a member of the promoter group of Sterling, has pledged 4.9 per cent of her shares in the company, worth Rs 221 crore, to IIFL Wealth Finance.

Sterling has informed the stock exchanges that Daruvala has pledged company shares as collateral for “supporting cash flow requirements of the promoter group”. Another member of Shapoorji Pallonji and Company (SP), had already pledged 37.2 per cent of its stake in Sterling with HDFC way back in 2019.

With this latest development, promoters have pledged 42 per cent of Sterling as collateral for loans, listing the company among the high-pledged promoter holdings. Daruvala now holds 3.1 per cent of the unencumbered stake in Sterling following the changes. Her husband, Khurshed Daruvala, also the chairman of Sterling, owns 9.8 per cent of the company.

Sterling’s shares gained nearly 10 per cent by close of 26 August’s trade on the BSE, giving it a market capitalisation of Rs 4,990 crore. SP holds 13.3 per cent of unencumbered Sterling shares, which were listed on the bourses in 2019.

The promoters owe Rs 950 crore to Sterling, for which the company has given them time till September 2021 to clear the amount. They have been servicing the interest component and the Rs 950 crore is the principal amount. This was pared from Rs 1,200 crore after the promoters sold two solar assets to Adani Green in March 2021.

The promoters had offered assets, including immovable properties, as security towards the pending amount. Besides, they have been initiating multiple plans to clear the dues.

In March this year, Khurshed sold 4.9 per cent in Sterling (from his total 14.7 per cent) in the open market for Rs 200 crore. Recently, SP sold its stake in Schott Kaisha, a packager of pharma products, to Serum Institute of India.

Leave a Reply

Your email address will not be published. Required fields are marked *