New Delhi: Markets regulator Sebi has put the proposed initial public offer (IPO) of Sterlite Electric Ltd on hold, according to an update on the watchdog's website on Monday.Sebi, however, has not disclosed
the reason for placing the IPO in abeyance.The company, part of the Vedanta Group, had filed its draft red herring prospectus (DRHP) with Sebi in early October.
The proposed IPO comprised a fresh issue of 77.9 lakh equity shares and an offer for sale (OFS) of an equal number of shares by the promoter and existing shareholders, according to the draft papers.Under the OFS, promoter Twin Star Overseas Ltd, along with existing shareholders Kailash Chandra Maheshwari, Jacob John G, and Ramguru Radhakrishnan, will offload shares.
According to market sources, the company is looking to raise around Rs 1,500 crore through its maiden public issue.As per the draft papers, the net proceeds from the fresh issue are proposed to be used to repay debt, fund capital expenditure for expansion, including the purchase of new plant, machinery, and equipment and for general corporate purposes.
Also, the company plans to allocate funds from the proceeds towards expansion at its Vadodara facility in Gujarat, with the investment spread over fiscal 2027.In FY25, Sterlite Electric reported revenue from operations of Rs 4,956 crore, marginally higher than Rs 4,918 crore in the previous fiscal.
Sterlite Electric (formerly Sterlite Power Transmission) is engaged in manufacturing capital goods and providing system integration solutions for the power transmission and distribution (T&D) sector, catering to both domestic and international markets.In 2025, a total of 84 companies have already tapped the mainboard market through maiden public offerings, and two issues are lined up for this week itself.
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