Sterling & Wilson Renewable Energy to Raise ₹700 Crore via Data Centre Stake Sale

Sterling & Wilson Renewable Energy Ltd of the Shapoorji Pallonji Group is in plans to raise ₹700 crore from a group of strategic investors through a stake sale in its data centre business.

Details of the Stake Sale

The CEO of the data centre business at Sterling and Wilson Private Limited (SWPL), Prasanna Sarambale, stated, “The modalities of stake sale are still under discussion, but the strategic investors have agreed to bring in ₹700 crore into Sterling and Wilson.”

Prasanna Sarambale also announced that the company plans to spin off its data centre business, established in 2015, into a separate entity to achieve this goal. The proceeds from the sale of stakes will be used to reduce the group’s overall debt and fund growth initiatives.

He further added that the data centre division is a 100% business unit of SWPL and is debt-free. By adding that due to Artificial Intelligence (AI), cloud and digital penetration in India, the segment could see a CAGR of over 30%.

In the last eight years, Sterling and Wilson Private Limited have built about 24 data centres in the world, with a total capacity of 63 MW. Of these, 6 data centres have been delivered in the international markets of MENA and Sub-Saharan Africa.

Sterling and Wilson Private Limited operates globally in more than 30 countries, with a presence in regions such as the Middle East, Asia, Europe, Africa, Australia, and the USA.

The Chairman of SWPL, Khurshed Daruvala, said that as a diversified business group with interest across industrial Engineering, Procurement and Construction (EPC) and solar EPC, generators and other segments, the company felt that the data centre portfolio has tremendous potential. Hence the company signed this agreement to strengthen its balance sheet to support its brilliant management team. He also added that the new investors on board will further strengthen the company’s financial position.

Currently, Sterling and Wilson Private Limited is executing 10 MW for a hyperscaler in Hyderabad, 3 MW for a client in DR Congo and Angola and 5 MW in Saudi Arabia.

About Sterling and Wilson Renewable Energy Limited

Sterling and Wilson Renewable Energy Limited (SWREL), which was previously known as Sterling and Wilson Solar Limited, is involved in providing engineering, procurement, and construction solutions as well as operations and maintenance (O&M) services.

On Wednesday, March 20, 2024, the share price of Sterling and Wilson Renewable Energy Limited opened at ₹477.80, touching the day’s high at ₹481.40, as of 11:50 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.