Sterlite Tech: Promoters to release pledged shares

The stock of Sterlite Technologies was buzzing on the bourses as its promoter entity Volcan Investments reached an in-principle agreement with their lender to remove pledge on shares. Promoters are expected to release shares of Sterlite pledged with the lender by the end of July, 2019.

As of March quarter, the Promoters holding was at 53.82 per cent, of which nearly 97 per cent was pledged. Thus, removal of pledge on shares indicates a positive signal from the promoters. Further, in the recent quarters, the promoters have decreased their holding from 53.86 per cent in the September 2018 ended quarter.

In the recent quarter (Q4FY19), the company’s revenue more than doubled to Rs. 1,791 crore while its net profit surged nearly 34 per cent to Rs. 165.6 crore. As on FY19, the company has a strong order book of around Rs. 10,516 crore giving strong revenue visibility for the next couple of years.

With this positive development, the stock of Sterlite Technologies surged nearly 7 per cent to touch an intraday high of Rs. 204.25 apiece. At 11.20 hours, the stock was trading at Rs. 200, up by around 4.5 per cent from its previous close.