Anil Agarwal stock engaged in providing end-to-end data network solutions to build data center networks, 5G Networks, and many more, jumped 14 percent in the day’s trade upon getting nod to launch the QIP of up to Rs. 1,000 Crores and fixing the floor price.
With a market capitalization of Rs. 5,601 Crores, the shares of Sterlite Technologies Limited were trading at Rs. 140.35, up 10.25 percent from its previous day’s close price of Rs. 127.30.
Pursuant to the approval of the Board of Directors of the Company, and the approval of the members of the Company by way of a special resolution at the annual general meeting, and the Authorisation and the allotment committee of the Board at its meeting held on April 8, 2024, authorized the opening of the company’s qualified institutional placement.
Sterlite Technologies Limited intends to raise up to Rs. 1000 Crores through qualified institutional placement at a floor price of Rs. 119, which is at a discount of 15 percent from its current market price of Rs. 140.
As per sources, the equity dilution under the institutional share sale (QIP) is likely to be 22 percent of the overall outstanding equity of the company. Based on the December-quarter shareholding pattern, the promoter group entities hold a 53.99 percent stake.
It has recently signed a new multi-year partnership agreement with Vocus, where it will see increased usage of STL’s ultra-slim profile Micro TM cables in Vocus’ network, along with the use of its flagship Stellar TM fiber, the world’s first bend-resilient fibre.
Sterlite Technologies Limited is one of the largest Optical Fiber and Optical Fiber cable manufacturers in the country, engaged in providing end-to-end data network solutions to build data center networks, 5G Networks, and many more. It manufactures and supplies optic fiber, cables, and optical interconnect devices and provides other related services.
As of Q2FY24, it has a strong order book worth Rs. 10,516 Crores, of which business-wise breakup consists of, 49 percent came for Optical Networking, 24 percent for Global services O& M, 19 percent for Global Services Capex and 8 percent for Digital & technology
Its revenue from operations declined by 29.79 percent from Rs. 1,883 Crores in Q3FY23 to Rs. 1,322 Crores in Q3FY24, accompanied by a profit of Rs. 47 Crore to a loss of Rs. 59 Crores.
Written by: Bharath K.S
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