Sterling & Wilson Solar could soon see inter-corporate loan that it extended to its promoter being repaid. Sources tell CNBC-TV18 that the promoters of Sterling & Wilson Solar are in advance talks to sell certain solar assets which fall under a Sterling & Wilson Pvt Ltd held by the two promoters. Shapoorji Pallonji and Khurshed Yazdi Daruvala are the promoters of the listed entity Sterling & Wilson Solar and they hold 24 percent and 51 percent stake respectively in the company.

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Sources say that up to 100 Mega Watt (MW) worth solar assets which fall under Sterling & Wilson Pvt Ltd are likely to be sold to Adani Green Energy, which will help the promoters raise approximately Rs 500 crore.

The proceeds through the sale are likely to be used by promoters to repay the inter-corporate loan to Sterling & Wilson Solar, hence reducing the related party transaction significantly.

Sterling & Wilson Solar’s promoters -- Shapoorji Pallonji and Khurshed Yazdi Daruvala -- as on August 2019 had an outstanding inter-corporate loan of Rs 2,563 crore payable as interest and principal to Sterling & Wilson Solar.

Sterling & Wilson Solar had raised Rs 2,850 crore through its IPO in 2019. The objective of the IPO was to enable the promoters to repay loans of Rs 2,563 crore (principal amount of Rs 2,335 crore and interest of Rs 228 crore) to Sterling & Wilson Solar within 90 days of listing, but the company got only Rs 1,000 crore after 133 days of listing.

The outstanding inter-corporate loan as on date still stands at approximately Rs 1,000 crore.

Sterling & Wilson promoters and Adani Green Energy are yet to reply to CNBC-TV18's queries.

(Edited by : Jerome)

First Published:Mar 23, 2021 9:30 PM IST