Sterling & Wilson eyes Rs 1,500-crore IPO for generator manufacturing arm

Synopsis

Sterling & Wilson plans a ₹1,500 crore IPO for its generator unit. Proceeds will fund the company's significant global and domestic expansion plans. The generator business has seen strong momentum, driven by data centre growth. Its order book nearly doubled in FY26, reaching ₹2,900 crore. This move aims to strengthen its market position and meet rising demand.

Mumbai: Engineering, procurement and construction company Sterling & Wilson is preparing to launch an initial public offering (IPO) of about ₹1,500 crore for its generator manufacturing subsidiary, Sterling Green Power Solutions (formerly Sterling Generators), according to multiple people familiar with the development.

ICICI Securities and IIFL Capital have been appointed lead managers to the issue. The proceeds will primarily be used to fund the company's expansion, the people said.

Headquartered in Silvassa, Sterling Green assembles and distributes diesel generator sets with capacities ranging from 250 kilovolt-amperes (kVA) to 5,000 kVA. It operates across India, the Middle East, Africa, Australia and Malaysia, and plans to strengthen its global footprint by setting up a facility in Dubai in FY27 to serve customers in Europe and the US.

Agencies

The company also plans to establish a manufacturing plant in Pune to meet rising domestic demand. It has earmarked capital expenditure of ₹90-100 crore over FY27 and FY28 for the expansion.

Queries sent to a Sterling & Wilson spokesperson did not elicit a response till press time.

Sterling Green was previously a subsidiary of Shapoorji Pallonji & Company, which held a 56% stake as of March 31, 2024, with the remaining shares owned by chairman Khurshed Daruwala and his family. According to a CareEdge Ratings report, Shapoorji Pallonji's holding fell to 42% by March 31, 2025, after a secondary share sale to a group of investors, resulting in Sterling Green ceasing to be its subsidiary.

The company has seen a sharp improvement in business momentum, driven largely by the rapid expansion of the data centre industry. According to a recent Crisil Ratings report, Sterling Green's order book nearly doubled in FY26, taking its order book-to-revenue ratio to around 3x. The order book stood at about ₹2,900 crore as of May 1, 2026, with nearly 80% of orders from marquee customers including Adani, AirTrunk and DAMAC. Provisional revenue for FY26 rose to ₹1,167 crore from ₹868 crore in FY25, while operating margin remained healthy at 11.5%, compared with 12% a year earlier.

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