Sterlite Power postpones IPO citing unfavorable market conditions

The company, which had filed the DRHP in August, informed market regulator Securities and Exchange Board of India (SEBI) about the decision and sought withdrawal of the DRHP, a company statement said.

“Given the volatility in the prevailing markets and the limited window available under the DRHP currently filed, Sterlite Power has decided to withdraw the DRHP. However, it is monitoring the market and will consider re-filing of DRHP in future. In the meantime, we are in talks with large private capital institutions to scale up the business.”

sterlite power Plan your IPO price 1,250 crore to raise funds for capital expenditure for expansion of its transmission operations. In its draft prospectus, the company said that it would use the proceeds of the IPO either in full or for repaying certain debts and for general corporate purposes.

The company got SEBI approval on its DRHP in December and it was valid for 12 months.

In an interview to Mint in July, Agarwal said that the company’s proposed IPO would be entirely dependent on market conditions. He had said, “… it is not for us to decide for ourselves.”

Noting that Sterlite Power is looking at various fundraising options, Agarwal said: “We are constantly looking for capital solutions that address scale, size, valuation, flexibility; All the requirements that should come with capital. And, right now, we have the option of the public markets, if the market supports and investors are excited. But, of course, there are private investors too and that option exists. So, we are evaluating everything.”

The company’s funding needs are expected to continue to grow in line with its diversification plans.

According to the draft prospectus filed last year, Sterlite Power’s net profit fell 7.7% in FY2011 870.12 crores.