STERLITE POWER TRANSMISSION LIMITED | LATEST SHARE PRICE & UPDATES
Sterlite Power Transmission Limited is the global name in the power transmission infrastructure industry, with a presence in India and Brazil. Sterlite Power has emerged as the largest Indian private company with over 26% market share of the power transmission projects won by tariff-based competitive bidding (TBCB).
Among all the private players in India, Sterlite Power has an impressive track record of completion of 25 projects covering 13,700 km. in India and Brazil. The company began its business in 2006 as transmission grid business division of Sterlite Technologies Ltd (Sterlite) and spun-off in 2015 from Sterlite Technologies Ltd as part of corporate restructuring. The company expanded its operations in Brazil in 2017. According to the Brazilian Electricity Regulator, SPTL has a 13% market share of the transmission projects auctioned during 2017-2021.
Sterlite Power is also the co-sponsor of India Grid Trust (IndiGrid), a power sector infrastructure investment trust. As of March 2021, IndiGrid owns 14 power infrastructure projects consisting of 40 transmission lines covering 7,570 kms and 11 substations with 13,550 MVA transformation capacity. IndiGrid is publicly listed on the Indian stock exchanges – NSE and BSE.
Sterlite Power’s competitive edge comes from extensive use of technology led innovative solutions in executing the complex projects successfully. The company is an active user of cutting edge technology in installing transmission towers- helicranes, drones, robotics, satellite based lidar technology, machine learning software etc. Sterlite Power has also invested in SharperShape, a technology start-up which provides an intelligence solution to improve the operation, reliability, and safety of infrastructure projects.
In September, 2021, Sterlite Power filed a draft red herring prospectus (DRHP) with SEBI, Sterlite Power Share will be listed on BSE and National Stock Exchange, to raise ₹ 1250 crores from the primary market. The company plans to deploy the IPO money worth ₹ 955 crore towards the loan repayment and rest for general corporate purposes. Sterlite Power has been focusing on debt reduction and monetizing its assets via INVITs. The company will be the biggest beneficiary of renewable energy rollout, nationwide 5G infrastructure development and fast growing urbanization of the country.
Sterlite Power transmission Ltd follows an integrated and diversified business model. For power transmission business, Sterlite Power earns its revenues from contractual tariffs agreed under long-term contracts, 35 years in India and 30 years in Brazil. The tariffs are linked to the time availability of the power transmission lines, irrespective of the actual quantum of power transmitted through the lines.
For Engineering, procurement and construction (EPC) contracts, Sterlite Power earns its revenues in the proportion of the project completion.
Besides, Sterlite Power also manufactures and exports power transmission products like conductors, OPGW and power cables to international customers (primarily in Europe and South America).
The company has 3 business divisions: Infrastructure, Solutions and Convergence.
- Infrastructure division develops power transmission infrastructure projects in India and Brazil. The company works on a BOOT basis – build, own, operate and transfer. The infrastructure unit is the largest business unit of the company accounting for over 50% of the annual revenue.
- Solutions division help power utilities to tackle their network congestion challenges, by upgrading and uprating corridor intensity. The major services provided by the company include system design, application engineering, complete engineering procurement and construction as well as project management, commissioning and lifecycle services, ensuring improved performance in the short and long-term. The company also manufactures and sells a diversified portfolio of power transmission products like conductors, OPGW and power cables to international customers (primarily in Europe and South America), including central and state electricity transmission companies, transmission developers and transmission engineering, procurement and construction (EPC) contractors. The company’s manufacturing facilities are located at Dadar & Nagar Haveli, Odisha, and Uttarakhand. The solutions division accounts for the remaining 50% of the annual revenues of the company.
- Convergence division helps telecommunication companies in building their optical fibre infrastructure by leveraging its existing power transmission network. The major services provided by the convergence division include conducting EPC work in fibre roll-outs and leasing neutral dark fibre, providing co-location facilities and towers to telecom customers, internet service providers, telecommunications companies, multiple system operators, global wholesale carriers and other communication service providers. The revenue contribution of the convergence division is miniscule but growing, earning ₹ 7 crores of business in fiscal 2021.
The registered office of the company is located at F-1, The Mira Corporate Suites, 1 & 2 Ishwar Nagar, Mathura Road, New Delhi.
|Symbol||Sterlite Power Transmission Ltd.|
|Face Value (₹):||2|
|Demat Status:||NSDL & CDSL|
Board of Directors
Key Business Highlights
- Sterlite Power runs a diversified & integrated Business Model- Sterlite Power’s business presence across India and Brazil is a hedge against any cyclicality in the release of new tenders. Through Solutions and convergence business divisions, Sterlite Power provides bespoke, technology led solutions to brownfield transmission infrastructure projects.
- Experienced player with track record of timely completion of 10 complex and challenging, high IRR projects in India and one in Brazil; Largest private player in Indian inter-state TBCB route market, with a market share of 26%.
- Sterlite Power is to benefit most from India’s shift to renewable energy and consequent demand for a robust transmission grid to connect the renewable energy generation centres, located in West and South India. The estimated investment in the power transmission sector is expected to be ₹3.5-4 trillion over the next five years.
- Brazil’s total electricity capacity is projected to increase from 181 GW (2020) to 239 GW (2030). Sterlite Power with a market share of 13% in Brazil power transmission industry is well placed to benefit from this capacity expansion.
- Sterlite Power maintains an efficient capital structure by securing long-term and stable project financing from accredited investors. During the last 3 years, Sterlite Power has profitably sold stakes in its 14 projects to IndiGrid and other investors as part of its asset-monetisation approach. The company generated an average ROCE of 26% for its investors during the last 3 years.
|Total Income (₹ Crores)||3,816||5,158||3,571||2,972|
|PAT (₹ Crores)||870||942||-524||272|
|Diluted EPS (₹)||142||154||-85||44.5|
|Book Value per Share (₹)||180||10||-110||-3|
|Equity (₹ Crores)||1,097||61||-675||-21.77|
Sterlite Power Transmission is an integrated player in the power transmission industry, operating in multiple segments like power transmission business (awarded through TBCB mode), power transmission and distribution (EPC) and manufacturing of power transmission products like power conductors and cables. This keeps it in competition with many players in different segments.
1. Power Transmission Business (TBCB mode)
- In power transmission business projects awarded through TBCB mode, Sterlite Power (26%) competes with Power Grid Corporation of India Ltd. (33%), Adani Transmission Ltd (19%), KEC International and Techno Electric.
- The competitors for its solutions (Products) business unit include Apar Industries and KEI.
- In Brazil, Sterlite Power competitors include Companhia de Transmissão de Energia Elétrica Paulista and Taesa S.A.
2. Power Transmission Business (EPC)
- In the EPC segment in power transmission and distribution (T&D) projects, Sterlite Power competes with KEI industries, Kalpataru Power Transmission Ltd and KEC Cables.
3. Indian Power Cable Segment
- The power cable market is more fragmented and commoditised, especially the low and medium voltage segments due to the presence of several unorganised players. Although competition is high in the industry, there are very few players in the extra high voltage (EHV) category as it is more technology intensive as compared to the low and medium voltage segment. Players like KEI Industries Ltd & Sterlite Power Transmission Ltd offer EHV cables up to 400 KV whereas KEC International Ltd & Universal Cables Ltd offer EHV cables up to 220 KV.
4. Indian Power Conductor Segment
- The power conductor domestic market is comparatively less competitive with only 3 players: Apar Industries Ltd (57%), Sterlite Power Transmission Ltd (21%) and Hindustan Urban Infrastructure Ltd (5%), capturing around 80% of the market share in fiscal 2020.
- Apar Industries is the leading player in the market with the most diverse portfolio of conductors for different applications, while Sterlite Power Transmission Limited is the only conductor manufacturer among these three major players to own and operate a transmission network in India.
“Sterlite Power, ESDS Software receive SEBI go-ahead to float IPOs”
Billionaire Anil Agarwal-led Sterlite Power Transmission and cloud services and data centre firm ESDS Software Solution have received capital markets regulator SEBI’s go-ahead to raise funds through initial share sales. The two companies had filed their preliminary IPO (initial public offering) documents with the Securities and Exchange Board of India (SEBI) during August and September.
“Sterlite may enter power storage biz”
Sterlite Power Transmission Ltd will consider entering the power storage business, a top company executive said, joining a bunch of aspirants eyeing the fledgling sector as rising power demand and generation open up new business prospects.
Frequently Asked Questions (FAQs) on Sterlite Power Transmission Unlisted Shares
The buying and selling of unlisted shares, and pre-IPO shares is fully legal and valid in India.
The procedure to buy the Sterlite Power Transmission unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. Once the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the Sterlite Power Transmission unlisted shares either on the same day of the fund transfer or before the end of the next working day.
In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.
The Sterlite Power Transmission Ltd shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.
The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Sterlite Power, please visit the stock page on our website: www.delistedstocks.in/current-offerings/sterlite-power-transmission/
There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factor, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares.
Before IPO, there is no restriction on sale and transfer of your Sterlite Power Transmission Ltd unlisted shares. But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.
Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.
If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.
The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI. The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.
The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange.
Yes, NRI’s can also buy and sell Sterlite Power unlisted shares just like domestic investors. But their investment is on a non-repatriable basis.