Vedanta Group’s Sterlite Electric Files for IPO: Aims to Raise Funds for Debt Repayment and Expansion
Vedanta Group company Sterlite Electric Ltd. has applied for an initial public offering of shares, marking a significant development in the Indian stock market. The IPO consists of a fresh issue of 77.9 crore equity shares of face value of Rs 2 each and an offer for sale by existing shareholders of 77.9 crore shares.
IPO Details: Fresh Issue and Offer for Sale
The fresh issue of 77.9 crore equity shares aims to raise funds for the company’s debt repayment, capital expenditure, and general corporate purposes. The offer for sale by existing shareholders, including Twin Star Overseas Ltd., Kailash Chandra Maheshwari, Jacob John G, and Ramguru Radhakrishnan, will provide an exit opportunity for these investors.
Promoter and Shareholding Pattern
Twin Star Overseas Ltd., a Mauritius-registered firm, is the promoter of Sterlite Electric and holds 69.46% of the pre-IPO equity capital. Vedanta Resources Ltd. is the parent organization of Twin Star Overseas Ltd. and acts as a holding company for Sterlite Electric, Sterlite Technologies Ltd., and Serentica Renewables India 9 Ltd. Vedanta owns 1.35% in Sterlite Electric.
Utilization of IPO Funds
Sterlite Electric plans to utilize the funds from the IPO fresh issue for repayment of debt (Rs 350 crore), funding capital expenditure (Rs 225 crore), and general corporate purposes. As on September 20, 2025, the aggregate outstanding borrowings of the company on a consolidated basis were Rs 3,486 crore.
Capital Expenditure Plans
The company plans to use the capital expenditure funds for expansion at its Vadodara facility, including the purchase of plant, machineries, and equipment over fiscal 2027. This expansion is expected to enhance the company’s manufacturing capabilities and increase its production capacity.
Merchant Bankers to the IPO
Axis Capital Ltd., Motilal Oswal Investment Advisors Ltd., and Nuvama Wealth Management Ltd. are the merchant bankers to the IPO. These bankers will play a crucial role in managing the IPO process and ensuring a successful listing for Sterlite Electric.
Business Overview: Products and Services
Sterlite Electric manufactures and supplies a wide range of overhead conductors, power cables, and optical ground wire (OPGW) products. The company provides master system integration services and has a global customer base, with customers in over 70 countries, including the USA, Brazil, Sweden, South Africa, Egypt, UAE, Chile, and Peru.
Manufacturing Facilities and Capacity
Sterlite Electric operates four manufacturing facilities across India, with locations in Jharsuguda (Odisha), Piparia (Dadra and Nagar Haveli), Rakholi (Dadra and Nagar Haveli), and Haridwar (Uttarakhand). The company’s annual installed capacity as of March 31, 2025, was 117,195.60 metric tonnes for overhead conductors, 2,400 kilometers for power cables, and 21,000 kilometers for OPGW.
Investment Opportunities and Risks
The IPO provides an opportunity for investors to participate in the growth story of Sterlite Electric. However, as with any investment, there are risks involved, including market volatility, competition, and regulatory changes. Investors should carefully evaluate the company’s financials, management, and industry trends before making an investment decision.
Conclusion
Sterlite Electric’s IPO is a significant event in the Indian stock market, offering investors a chance to invest in a leading manufacturer of power transmission products. With its strong product portfolio, global customer base, and expansion plans, the company is well-positioned for growth. However, investors should approach the IPO with a long-term perspective and carefully consider the risks and opportunities involved.
