Sterlite Electric files IPO papers with SEBI; aims to raise around ₹1,500 crore

Sterlite Electric IPO: Sterlite Electric, a leading player in India’s power transmission and distribution space, has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) worth around ₹1,500 crore. The Sterlite Electric IPO aims to strengthen the company’s balance sheet, fund its expansion plans across India and international markets, and provide investors an opportunity to participate in a growing power sector enterprise.

Sterlite Electric IPO Details and Structure

According to the Draft Red Herring Prospectus (DRHP) filed on October 1, 2025, the Sterlite Electric IPO comprises a mix of a fresh issue of 77.9 lakh equity shares and an equal number of shares under Offer for Sale (OFS) by the promoter and existing shareholders. Under OFS, promoters and early investors sell part of their holdings, allowing them to realize returns while offering investors additional shares. Promoter Twin Star Overseas Limited, along with existing investors Kailash Chandra Maheshwari, Jacob John G, and Ramguru Radhakrishnan, will participate in the OFS component.

Market analysts estimate that the Sterlite Electric IPO could mobilise close to ₹1,500 crore, making it one of the notable capital market events in the power and infrastructure sector this quarter. The IPO is expected to be listed on major Indian stock exchanges, including NSE and BSE, ensuring high liquidity and visibility for investors.

DRHP Highlights and Fund Utilisation Plans

As per the DRHP, Sterlite Electric intends to utilise ₹350 crore from the IPO proceeds to repay or prepay a portion of its outstanding borrowings, which currently stand at ₹600 crore (standalone) and ₹3,485.7 crore (consolidated). An estimated ₹225 crore will be allocated towards capital expenditure at the company’s Vadodara facility in Gujarat, for acquiring new machinery, plant upgrades, and expansion initiatives.

The remaining funds are earmarked for general corporate purposes, improving working capital, and supporting strategic growth. This structured fund utilisation reflects Sterlite Electric’s commitment to debt reduction, operational efficiency, and strengthening its position in India’s expanding energy infrastructure market.

Financial Performance of Sterlite Electric

In FY25, Sterlite Electric posted a revenue from operations of ₹4,956 crore, slightly higher than ₹4,918 crore in FY24. The company continues to maintain a strong foothold in manufacturing capital goods and delivering system integration solutions in the power transmission and distribution (T&D) sector. Its clientele spans both domestic and international markets, highlighting the company’s global competitiveness.

Power Sector Outlook and Market Potential

India’s power sector is witnessing rapid growth, driven by renewable energy targets, grid modernization, and rising electricity demand. According to the DRHP, India’s conductor market, valued at ₹185 billion in FY25, is projected to grow at a CAGR of 5–6%, reaching ₹230–250 billion by FY30. Similarly, the cables and wires market, currently worth ₹1,951 billion, is expected to touch ₹3,350–3,550 billion by FY30, registering a CAGR of 11–13%. This growth directly benefits companies like Sterlite Electric, positioning them for long-term profitability and expansion.

Merchant Bankers for the Sterlite Electric IPO

To manage the IPO, Sterlite Electric has appointed Axis Capital, Motilal Oswal Investment Advisors, and Nuvama Wealth Management as merchant bankers. The DRHP filing is a crucial step toward SEBI approval, following which the company will announce issue dates, price bands, and allotment schedules. Analysts believe the IPO offers an attractive entry point for investors seeking exposure to India’s fast-growing power transmission and distribution sector.