Vedanta's Sterlite Electric Submits DRHP to SEBI for Upcoming IPO

Sterlite Electric, a member of the Vedanta Group, has submitted its draft red herring prospectus (DRHP) to the capital markets regulator, Sebi, aiming to raise funds through an IPO. This will include a new equity sale of 77.9 lakh shares, alongside an offer for sale (OFS) of an additional 77.9 lakh shares.

The company’s founders, Anil Agarwal and Twin Star Overseas, will join other shareholders in the OFS. The funds generated from the fresh issue are designated for repaying or prepaying borrowings of the company and its subsidiaries, supporting capital expenditures, and covering general corporate expenses.

Company Overview

Sterlite Electric specializes in manufacturing capital goods and providing system integration solutions, primarily focusing on the power transmission and distribution (Power T&D) sector. Its diverse product line encompasses overhead conductors, power cables, and optical ground wires (OPGW), in addition to master system integration (MSI) services.

In the fiscal year 2025, Sterlite Electric captured a 15% market share of the Indian power conductors sector by value and held a 25–28% share of the high-ampacity AL59 conductor market in India. From April 2022 to March 2025, the company provided services to over 70 countries, including the USA, Brazil, Sweden, South Africa, Egypt, UAE, Chile, and Peru.

Revenue from external clients outside India rose to Rs 1,001 crore in FY25, up from Rs 1,658 crore in FY24 and Rs 1,180 crore in FY23.

Industry Snapshot

A report from Crisil, referenced in the DRHP, indicates that India’s transmission sector is poised for significant growth as it integrates 500 GW of non-fossil fuel capacity by 2030. This expansion will mainly come from solar (280 GW) and wind (140 GW) energy sources.

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There will be a substantial need for investment in inter-state transmission systems to efficiently transport renewable energy from production centers to areas with high demand. Moreover, the power cables market is forecasted to expand at a compound annual growth rate (CAGR) of 11–13% between FY24 and FY29. This growth is expected to be driven by increased investments in transmission and distribution, integration of renewables, and urban infrastructure development. Large, integrated players like Sterlite Electric, thanks to their scale and technological edge, are well-positioned to capitalize on these trends.

Book Running Lead Managers

The book-running lead managers for the IPO include Axis Capital, Motilal Oswal Investment Advisors, and Nuvama Wealth Management.

What are your thoughts on how this IPO might shape the power transmission industry in India?