Sterlite Technologies raises ₹1,000 Crore via QIP; stock jumps ~9%

16 Apr 2024 , 11:33 AM

Sterlite Technologies shares gained as much as 9% in Tuesday’s intraday session after the company announced raising ₹1,000 Crore through a QIP.

At around 11.14 AM, Sterlite Technologies was trading 6.90% higher at ₹142.50, against the previous close of ₹133.30 on NSE. The counter rose to an intraday high of ₹144.50.

In an exchange filing on April 13, Sterlite Technologies stated that the funds were generated through a share sale to institutional investors.  The corporation is yet to explain the rationale for raising funds.

The board has approved the issuance of 8.84 crore equity shares at ₹113.05 each, indicating a 5% decrease from the floor price of ₹119.

HDFC Mutual Fund was the largest investor in the share sale, followed by Nippon Life India AMC, Goldman Sachs, and Bandhan Mutual Fund.

In February 2024, the firm announced a strategic agreement with Lumos, a US-based company, to develop fibre and optical connection solutions in the mid-Atlantic area. Sterlite will supply innovative, purpose-engineered optical fibre cable designs as part of the agreement, among other things. The stock has dropped around 17% in the previous year and about 9% over the last five years.

STL is a global leader in optical and digital solutions, delivering cutting-edge solutions for 5G, rural, FTTx, enterprise, and data centre networks. The firm creates and manufactures across four continents for clients in over 100 countries, inspired by its mission of ‘Transforming Billions of Lives by Connecting the World’.

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