Sterlite Electric Files DRHP for Mainboard IPO, Totaling 1.56 Crore Shares Ahead of NSE & BSE Listing

Mumbai, 6 October 2025: Sterlite Electric Limited, formerly known as Sterlite Power Transmission Limited, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its Mainboard Initial Public Offering (IPO). The proposed issue comprises a fresh issue of 77,93,371 equity shares and an Offer for Sale (OFS) of 77,95,803 shares, aggregating to a total of 1,55,89,174 shares. The IPO will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), with the price band, bidding period, and lot size to be announced later.

Sterlite Electric Limited is a leading Indian manufacturer of capital goods and integrated solutions provider for power transmission and distribution. The company produces overhead conductors, power cables, optical ground wire (OPGW), and undertakes master system integration (MSI) projects for government utilities, renewable energy developers, and industrial clients. Operating across 70+ countries, Sterlite Electric is promoted by Anil Agarwal and Twin Star Overseas Limited, and continues to expand its footprint in high-demand energy infrastructure markets.

Sterlite Electric’s Fresh Issue and OFS Structure Signals Strategic Capital Mobilisation

The IPO will feature a fresh issue of 77.93 lakh shares to raise capital for corporate purposes, while the OFS allows promoters and select shareholders to divest 77.96 lakh shares. The OFS includes shares by promoter Twin Star Overseas Limited and shareholder Nikhil Agarwal, with proceeds going directly to the selling shareholders. By combining the fresh issue and OFS, Sterlite Electric aims to balance capital infusion with promoter liquidity, positioning the company for growth in its manufacturing and integrated solutions business.

Sterlite Electric’s FY25 Financial Performance Highlights: Revenue Growth Moderates, Profit Margins Slightly Contract

The company reported revenue from operations of ₹49,557.60 million in FY25, up from ₹48,128.73 million in FY24, reflecting a 3% year-on-year (YoY) increase. Profit After Tax (PAT) decreased to ₹1,830.30 million, compared with ₹2,002.74 million in FY24, largely due to rising operational costs and moderate margin pressure. Net worth rose to ₹14,819.10 million, while total borrowings declined to ₹3,272.21 million, indicating improved leverage management. Basic EPS stood at ₹12.70, down from ₹14.23, while NAV per share improved to ₹117.85, demonstrating steady balance sheet growth.

Sterlite Electric’s Planned Utilisation of IPO Proceeds: Debt Reduction and Manufacturing Expansion

The company intends to use proceeds from the fresh issue for:

• Repayment or prepayment of borrowings, enhancing the company’s debt profile.
• Capital expenditure on plant and machinery at Silvassa and Haridwar facilities.
• General corporate purposes supporting operational flexibility.

By strategically deploying IPO funds, Sterlite Electric seeks to strengthen its manufacturing capabilities and maintain financial stability, while reducing reliance on external borrowings.

Sterlite Electric’s Promoters, Lead Managers, and Key Strengths Position Sterlite Electric for Scalable Growth

The promoters, led by Anil Agarwal and Twin Star Overseas Limited, currently hold 61.81% of equity pre-offer. Lead managers include Axis Capital Limited, Motilal Oswal Investment Advisors Limited, and Nuvama Wealth Management Limited, with MUFG Intime India Private Limited acting as registrar. The company benefits from a comprehensive product portfolio, global market reach, and an experienced management team, alongside improving leverage and robust export operations, which contributed 20.19% of FY25 revenue.

Sterlite Electric’s Key Operational Risks: Customer Concentration and Market Exposure Could Influence Future Performance

Top 10 customers contributed 46% of revenue in FY25, highlighting concentration risk. Supplier dependence is also notable, with the top 10 vendors accounting for 83.22% of material costs. Revenue from overhead conductors remains significant, exposing the business to sectoral demand fluctuations. Additionally, the export contribution exposes the company to global trade dynamics, while operational challenges such as manufacturing quality and plant disruptions remain ongoing considerations.

Sterlite Electric’s DRHP filing demonstrates a calculated approach to capital expansion and debt management, with a focus on strengthening manufacturing capacity, financial stability, and international market presence. The combination of a fresh issue and OFS allows flexibility in fund utilisation and promoter shareholding adjustments, aligning corporate strategy with operational and financial objectives.

All information has been cross-verified from Sterlite Electric Limited’s Draft Red Herring Prospectus (DRHP) filed with SEBI.

REF: https://www.bseindia.com/corporates/download/360465/IPO Prior/DRHP_20250930230518.pdf

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