Sterlite Tech sets floor price at ₹119 per share for ₹1,000 crore QIP

9 Apr 2024 , 10:35 AM

According to a corporate exchange filing, Sterlite Technologies Ltd.’s board has approved the flotation of a qualified institutional placement. The floor price of the proposed QIP is ₹119 per share, which represents a 6% reduction from Monday’s closing price of ₹127.10 per share.

Through the QIP, Sterlite Technologies hopes to collect about ₹1,000 Crore, according to a report by CNBC-TV18 that cited anonymous sources. The report also stated that the equity dilution resulting from the institutional share sale (QIP) is probably going to account for 22% of the company’s total outstanding stock. Promoters’ group entities held 53.99% of the shares, according to the shareholding pattern for the December quarter 2017.

A 60-day lock-in period would also apply to any additional share sales. For the QIP, the book-running lead managers are Nuvama and Motilal Oswal.

Private telecom operators have placed orders worth ₹900 Crore with Sterlite Technologies for fiberization projects starting in FY 2024. This amounts to approximately 10% of the company’s estimated ₹9,000–10,000 Crore order book. In order to improve network and telecommunications connectivity, fiberization entails installing high-capacity optical fibre cables alongside roadways and highways. The orders issued by STL encompass more than 20 states and around 15,000 kilometres across India. The corporation continues to have a strong manufacturing presence with six manufacturing sites in India.

The company and the US-based Lumos corporation launched a strategic alliance last month with the goal of jointly developing fibre and optical connection solutions for the mid-Atlantic region. According to a release, Sterlite will provide cutting-edge, specially designed optic fibre cable designs in addition to its flagship opto-bolt product, a pre-connectorized drop cable that drastically cuts down on installation time.

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