The promoters of Sterling and Wilson Solar (SWSL), Shapoorji Pallonji Group and Khurshed Yazdi Daruvala, failed to honour their commitments on repaying the loans of worth Rs 2,341 crore citing liquidity crisis, reported Economic Times.
Sterling and Wilson Solar on Friday posted a 36 per cent rise in consolidated net profit at Rs 79.40 crore for the second quarter of this fiscal. The Shapoorji Pallonji Group firm had reported a consolidated net profit of Rs 58.36 crore in the September quarter of the previous fiscal, it said in a BSE filing.
According to Econonic Times, Corporate lawyers and activists slammed the company’s management for keeping investors in the dark. “Change in the repayment terms is a complete breach of trust and Sebi (Securities and Exchange Board of India) should step in,” said Huzefa Nasikwala, founder partner, Nasikwala Law Office, told the Economic Times.
Sterling & Wilson raised Rs 2,850 crore through the IPO, which was an offer for sale, in August. The company said the promoters would utilise a portion of the net offer proceeds towards funding full repayment of the loans due to the company and Sterling and Wilson International Solar FZCO, from SWPL and Sterling and Wilson International FZE (a subsidiary of SWPL) respectively, within 90 days of the date of listing of the equity shares, which would have been November 18, reported Money Control.