Upcoming IPOs in India 2021

26 October 2021

Sterlite Power & Transmission Ltd. filed its Draft Red Herring Prospectus with SEBI in 2021 for an IPO worth Rs. 1,250 crore, marking a significant milestone for one of India's leading power transmission companies. The proposed public offering brought renewed attention to the unlisted shares of the company, which had already built a formidable portfolio over the years.

At the time of filing, Sterlite Power was running 25 active transmission projects spanning over 13,000 circuit kilometers across India and Brazil. This scale alone made it one of the more interesting infrastructure plays in the pre-IPO space. The company held a domestic market share of approximately 33%, placing it among the top three power and transmission companies in the country.

• The IPO proceeds were primarily earmarked for debt reduction, with the remaining capital intended for bidding on new government tenders. This was a fairly sensible use of funds given that the transmission sector in India was about to see a sharp uptick in activity, with the government preparing to award 44 new projects under the Green Energy Corridor worth nearly Rs. 41,369 crore.
• Sterlite Power had also recently bagged a new project in South Africa through its Brazil-based subsidiary, expected to generate USD 3.8 million in revenue a sign that the company's international ambitions were not limited to one geography. A tie-up with Octopus Energy further signalled its intent to move beyond pure transmission into power storage and generation.

For investors tracking the unlisted shares space, Sterlite Power's DRHP filing was a moment worth paying attention to. The company's fundamentals were solid, its order pipeline was growing, and the broader tailwind from India's infrastructure push was firmly in its favour.

​