Sterlite Technologies board approves ₹1,000-crore QIP, floor price set at ₹119 per share

Shares of Sterlite Technologies Ltd rallied nearly 15% on Tuesday, April 9, after the company's board approved to raise funds through qualified institutional placement (QIP) route.

Sterlite Technologies intends to raise ₹1,000 crore through the QIP with a floor price of ₹119 per share based on the pricing formula as prescribed under SEBI ICDR regulations, the company said in an exchange filing on Monday, April 8.

Sterlite Technologies may offer a discount of up to 5% on the floor price calculated for the issue. The final issue price will be determined after consultation with the book-running lead managers—Motilal Oswal and Nuvama.

"Please note that the trading window will be closed with immediate effect until April 15, 2024, for the purpose of the Issue," the filing read.

Sterlite Technologies' promoter group held a 53.99% stake in the company based on the December quarter shareholding pattern. The shareholding pattern for the January-March period is yet to be revealed.

Shares of Sterlite Technologies Ltd gained as much as 14.95% to hit an intraday high of ₹146.4 apiece on the NSE. However, the stock pared early gains and closed 10% higher at ₹140.15 apiece.

Sterlite Technologies received orders worth ₹900 crore for fiberisation projects from private telecom companies in FY 2024.

The company, through its advanced Optical solutions and Smart Fibre Deployment services, will support telcos in offering high-speed connectivity across 20 states, spanning over 15,000 kilometres in the country.

Last week, the company also announced a multi-year partnership with Australia's Vocus Group for deployment of high-capacity networks in Australia.

As part of the deal, Vocus Group will increase the usage of Sterlite's ultra-slim profile Micro TM cables in its network. The Australia Telco will also deploy STL’s flagship Stellar TM fiber, a first-of-its-kind bend-resilient fiber with backward compatibility to fiber found in legacy networks.

Sterlite Technologies has been supporting Vocus in building, operating and maintaining its extensive fiber network with an optical network solution.