Rs 10,290 crore order book: This multibagger telecom manufacturing company crosses a key milestone towards its Global Services Business demerger
The stock gave multibagger returns of 1,220 per cent since is stock was listed on both exchanges in April 2005.
Sterlite Technologies Limited (STL), a leading optical and digital solutions company announced that it has achieved a significant milestone towards its Global Services Business (GSB) demerger, receiving approval from its shareholders and secured and unsecured creditors. The approval paves the way for shares of the new business to be listed separately.
At the National Company Law Tribunal (NCLT) convened meetings held on July 10, 2024, the demerger proposal received 100 per cent approval from both secured and unsecured creditors and 99.98 per cent from equity shareholders through the voting process. The voting results reflected a resounding confidence in STL’s growth potential and value creation.
STL’s Global Services Business has brought substantial value to its customers over the past decade. With its automation-led digital ecosystem creation capability, the business has been making significant strides in India and the UK. It has been a major part of India’s digital growth story, blending the spirit of nation-building and digital infrastructure creation with automation. Over 1.35 lakh km of Optical Fibre network have been deployed across the country in 23 states, positioning STL as a trusted partner for delivering critical Optical solutions
The demerger will enable both businesses—STL and the new Global Services entity—to grow independently with more agility and focus, creating strong, distinct platforms for achieving their goals. This strategic partner has a specific interest in the Global Services Business. No economic interest of any shareholder of the Demerged Company would change post-demerger. The process of getting approval from the NCLT will be completed in an indicative timeline of 2-3 months.
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About the Company
Sterlite Technologies Limited was established in July 2001 after the demerger of the telecom division of Sterlite Industries Ltd (SIL). In July 2006, STL acquired the transmission line business of SIL to foray into the power transmission cables business. STL has grown over the years to become the largest optical fiber and optical fiber cable manufacturer in the country. The company also has a sizeable presence in overseas markets with an established presence in the global optical fibre market.
On Friday, shares of Sterlite Technologies Ltd surged 4.62 per cent to Rs 144.85 per share from its previous closing of Rs 138.45 with an intraday high of Rs 148.75 and an intraday low of Rs 137.90. The stock’s 52-week high is Rs 179 while its 52-week low is Rs 109.80. The shares of the company saw a spurt in volume by more than 3.60 times on BSE.
Order book: As of March 31, 2023, the company’s order book stood at Rs 10,290 crore which is spread across its three business units- Optical Networking, Global Services, and Digital.
The stock gave multibagger returns of 1,220 per cent since is stock was listed on both exchanges in April 2005. Investors should keep an eye on this telecom stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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