The company, which had filed the DRHP in August, informed market regulator Securities and Exchange Board of India (Sebi) about the decision and sought to withdraw the DRHP, a company statement said.
“Given the volatility in the current markets and the limited window available under the currently filed DRHP, Sterlite Power has decided to withdraw the DRHP. However, it remains observant of the market and will consider re-filing DRHP in the future. In the meantime, we are in conversation with large private capital institutions to grow the business," Pratik Agarwal, managing director, Sterlite Power, said.
Sterlite Power planned its IPO worth ₹1,250 crore to raise funds for capital spending to expand its transmission operations. In its draft prospectus, the company said it would use the proceeds of the IPO to either fully or party repay certain loans and for general corporate purposes.
The company received Sebi approval over its DRHP in December and it was valid for 12 months.
In an interview to Mint in July, Agarwal has said that the company’s proposed IPO would purely depend on the market conditions. “…it’s not for us to decide on our own," he had said.
Noting that Sterlite Power continues to look at various fundraising options, Agarwal had said: “We are constantly looking for capital solutions which address the scale, the size, the valuation, the flexibility; all of those requirements that the capital should come with. And, right now, we have the option of the public markets, if the market supports and the investors are excited. But, of course, there are also private investors and that option also exists. So, we are evaluating everything."
The company’s funding needs are expected to grow going forward in line with its diversification plans.
According to the draft prospectus filed last year, Sterlite Power’s net profit in FY21 fell 7.7% to ₹870.12 crore.
