Sterlite Electric files IPO paper with SEBI; aims to raise around ₹1,500 crore

Sterlite Electric, which has filed draft papers with SEBI, is looking to raise around Rs 1,500 crore through its initial public offering (IPO) to fund its growth plans and pare debts.

The IPO is a mix of fresh issue of 77.9 lakh equity shares and an equal number of shares under offer for sale (OFS) by a promoter and existing shareholders, Sterlite Electric (formerly known as Sterlite Power Transmission), according to the draft red herring prospectus (DRHP) filed on Monday.

Under the OFS, promoter Twin Star Overseas Limited, and existing shareholders -- Kailash Chandra Maheshwari, Jacob John G and Ramguru Radhakrishnan -- would offload shares.

According to market sources, the company is eyeing to mobilise around ₹1,500 crore through its maiden public offering.

An email query sent to the company seeking a response on a fundraising through IPO remained unanswered.

As per the DRHP, the proceeds from the fresh issue will be utilised to repay or prepay some of its outstanding borrowings, to fund capital expenditure for expansion, including the purchase of new plants, machinery and equipment, and for general corporate purposes.

As on September 20, 2025, the aggregate outstanding borrowings of the company on a standalone basis were ₹600 crore and on a consolidated basis, it is ₹3,485.7 crore.

The company proposes to utilise an estimated amount of up to ₹350 crore from the net proceeds towards repayment/ prepayment, in part or full, of all or a portion of certain borrowings availed by our company and the accrued interest thereon, the details of which are mentioned below, the DRHP said.

Further, the company proposes to utilise an estimated amount of ₹225 crore from the net proceeds towards the funding of capital expenditure requirements for expansion at our Vadodara facility in Gujarat for the purchase of plant, machinery and equipment over fiscal 2027.

In FY25, the company posted a revenue from operations of ₹4,956 crore compared to ₹4,918 crore in the preceding fiscal.

Sterlite Electric is engaged in manufacturing capital goods and providing system integration solutions in the power transmission and distribution (T&D) sector, catering to both domestic and international markets.

On the outlook for the power sector, the company said it is expanding rapidly through rising generation capacity, ambitious renewable energy targets and an increasingly interconnected grid.

It said this surge in electricity demand has propelled the electrical power cables and conductors industry.

In fiscal 2025, the Indian market size of conductors reached Rs 185 billion and is expected to grow at a CAGR (compound annual growth rate) of approximately 5-6% from fiscal 2025-2030 to reach Rs 230-250 billion by fiscal 2029, the company shared in the DRHP.

In fiscal 2025, India's cables and wire market was valued at approximately Rs 1,951 billion and is expected to grow at a CAGR of 11-13% between fiscal 2025-2030 to reach Rs 3,350-3,550 billion by fiscal 2030, it said.

To assist the public offering, the company has appointed Axis Capital, Motilal Oswal Investment Advisors and Nuvama Wealth Management as merchant bankers.