Sterling Green Power Solutions to Launch ₹1,500 Crore IPO as Data Centre Boom Drives Order Book Nearly Doubling

Sterling Green Power Solutions to Launch ₹1,500 Crore IPO as Data Centre Boom Drives Order Book Nearly Doubling​

Mumbai: Sterling & Wilson, a major engineering and construction company, is preparing to launch an Initial Public Offering (IPO) of approximately ₹1,500 crore for its generator manufacturing subsidiary. The entity, named Sterling Green Power Solutions, was formerly known as Sterling Generators. This move signals significant investor confidence in the high-growth power generation sector.

Two firms, ICICI Securities and IIFL Capital, have been appointed as lead managers to spearhead the forthcoming issue. The capital raised from this IPO is earmarked primarily for funding the company’s ambitious domestic and international expansion plans.

Strategic Expansion and Global Footprint Enhancement​

Sterling Green Power Solutions currently operates out of Silvassa, assembling and distributing diesel generator sets. These robust units range in capacity from 250 kilovolt-amperes (kVA) up to 5,000 kVA. The company maintains a strong operational presence across multiple continents, including India, the Middle East, Africa, Australia, and Malaysia.

Looking ahead, the firm plans significant infrastructure additions. It intends to establish a new facility in Dubai by FY27, which will be strategically positioned to serve the growing markets in Europe and the United States. Additionally, domestic demand dictates the establishment of a manufacturing plant in Pune.

Capital Expenditure Roadmap for Future Growth​

The company has clearly defined its immediate capital requirements for accelerated growth. It has earmarked a combined capital expenditure of ₹90-100 crore across FY27 and FY28 to support these vital expansions. These investments underscore the management’s commitment to scaling up operations commensurate with market demand.

Explosive Growth Fueled by Data Centre Demand Surge​

The company has demonstrated remarkable momentum, largely driven by the rapid and continuous expansion of the data centre industry globally. A recent report from Crisil Ratings highlighted the transformative impact this trend has had on the business trajectory.

Sterling Green’s order book experienced a near doubling in FY26. This phenomenal growth translates to an impressive order book-to-revenue ratio estimated at around 3x. As of May 1, 2026, the company’s order book stood strong at approximately ₹2,900 crore.

Financial Performance and Ownership Structure Shift​

The increase in order volume is reflected in the company's financial trajectory. Provisional revenue for FY26 has risen to ₹1,167 crore from the ₹868 crore recorded in FY25. Despite this rapid scaling, operational stability remains high, with a healthy operating margin reported at 11.5%. This figure follows a 12% operating margin in the preceding year.

The subsidiary’s ownership structure has recently evolved. It was previously part of Shapoorji Pallonji & Company, which held a 56% stake as of March 31, 2024. Following a secondary share sale to other investors, the holding for Shapoorji Pallonji decreased to 42% by March 31, 2025.

The company’s current portfolio boasts strong client affiliations. Nearly 80% of the large orders are concentrated from major marquee customers, including Adani, AirTrunk, and DAMAC.