Sterlite Technologies raises ₹1,000 crore through QIP route, money to be used to strengthen balancesheet

Sterlite Technologies, an optical and digital solutions company, said on Tuesday it has raised ₹1,000 crore through the qualified institutional placement (QIP) route. Sterlite said the fund-raising witnessed healthy participation by highly reputed global and Indian investors.

Sterlite said it approved the issue and allotment of 8.84 crore equity shares to qualified institutional investors, including HDFC Mutual Fund, Nippon Life India, Goldman Sachs and Bandhan Mutual Fund, aggregating to ₹1,000 crore. Post the allotment, the paid-up equity share capital of the company has increased to ₹97.5 crore, comprising 48.75 crore equity shares, it stated.

Ankit Agarwal, Managing Director at Sterlite Technologies, said the money raised through the QIP will be utilised towards strengthening the company’s balance sheet.

Earlier this month, the company had announced it has been awarded orders worth ₹900 crore in fiscal year 2024 (FY24) to provide integrated optical solutions to the leading service providers in the country. The company said that through its advanced optical solutions and smart fibre deployment services, it will support service providers in bringing high-speed connectivity in more than 20 states.

During the third quarter of FY24, Sterlite Technologies reported a 30% drop in its operating revenue at ₹1,322 crore on a consolidated basis. The company reported a net loss of ₹59 crore during the quarter as compared to a net profit of ₹47 crore in the same period a year ago.

“We are well positioned to grow our optical business with our strategically located manufacturing facilities. Our optimised cost structure and our continued product innovation and customer approvals from our products from tier 1 telecom operators and customers across the globe. We believe that we are well positioned to capture significant market share, as the demands come back up,” Agarwal had said during the Q3 earnings call.

Sterlite Technologies shares have dropped over 4% since the beginning of the year. The stock has lost over 11.5% in the last one year.