Sterlite Electric to Roll Out IPO, Proceeds to Fund New Power Cables Plant
Sterlite Electric Ltd. will be coming out with its Initial Public Offering (IPO), and has filed Draft Red Herring Prospectus (DHRP) for the same with Securities and Exchange Board of India (SEBI). Even though the size of this issue has not been disclosed officially, some media portals have reported it as about Rs. 1,500 crore.
Further, Sterlite Electric will invest a portion of the net proceeds to set up a greenfield power cables plant.
About Sterlite Electric
Sterlite Electric was incorporated in 2015, and is a manufacturer of overhead conductors, power cables, and Optical GroundWire (OPGW). The company also provides Master System Integration services for Transmission and Distribution (T&D) to optimise grid infrastructure.
The company has conductor and OPGW manufacturing facilities in Odisha’s Jharsuguda, MP’s Piparia and Rakholi of Dadra and Nagar Haveli. Further, Sterlite Electric manufactures power cables at its Haridwar factory.
In FY25, the company earned a revenue of Rs. 4,997.40 crore, and reported a Profit After Tax of Rs. 183.03 crore.
Sterlite Electric’s parent company is Twin Star Overseas Ltd., a holding company which holds significant stake in Vedanta Resources. Vedanta Resources is again a holding company which owns substantial portion of Vedanta Ltd., the Anil Agarwal-led Indian metals and mining giant.
Net Proceeds to Fund Expansion & Debt Repayment
Sterlite Electric’s DRHP doesn’t specify the amount of expected net proceeds of the IPO, but the document states that they will be used towards expansion and payment of debt. Apart from this, not more than 25% of the proceeds shall be used towards general corporate purposes.
New Power Cables Factory at Vadodara
Out of the net proceeds of the issue, Rs. 225 crore will be used by Sterlite Electric during FY27 towards development of a new power cables plant in Gujarat’s Vadodara. This plant has a total estimated development cost of Rs. 252.60 crore.
The company’s DHRP reads that this new plant targets “…to support our growth plans and meet increasing demand from existing and new customers”. This facility will produce cables for High Voltage Direct Current (HVDC) and High Voltage Alternating Current (HVAC) upto 400 KV.
Debt Repayment
Sterlite Electric will utilise Rs. 350 crore from the IPO proceeds for the payment of debt during FY27. This move will help Sterlite Electric to cut down its debt servicing costs, and in maintaining a ‘favourable’ debt-equity ratio.
The company stated that as on 20th September 2025, its outstanding borrowings stood at Rs. 3,485.78 crore on a consolidated basis and at Rs. 600.04 crore on standalone basis.
Available Details of Sterlite Electric’s IPO
Sterlite Electric’s IPO will offer a total of 1.56 crore shares, out of which upto 0.78 crore shares will be freshly issued and the remaining will be existing shares. Each share will have a face value of Rs. 2.
Dates of this IPO are yet to be announced, as is the price band for the shares offered as well as the lot size.
Reservation of the Offer by Investor Categories
Out of the total shares offered, not less than 75% will be open to Qualified Institutional Buyers (QIBs), whereas not more than 10% of the issue will be open to retail investors. Further shares open to Non Institutional Investors (NIIs) will be capped at a maximum of 15% of the issue.
