Sterlite Technologies Ltd has approved the launch of a qualified institutional placement (QIP) according to an exchange filing. The proposed QIP has a floor price of Rs 119 per share, reflecting a 6 percent discount to Monday’s closing price of Rs 127.10 per share.
Reports suggest that Sterlite Technologies intends to raise around Rs 1,000 crore through the QIP. The equity dilution resulting from the institutional share sale is likely to be approximately 22 percent of the company’s overall outstanding equity. Based on the shareholding pattern for the December quarter, the promoter group entities held a 53.99 percent stake.
There will be a 60-day lock-in period for any further share sale. Motilal Oswal and Nuvama have been appointed as the book running lead managers for the QIP.
Recently, Sterlite Technologies announced securing orders worth Rs 900 crore for fiberisation projects from private telecom companies for the fiscal year 2024. These orders constitute roughly 10 percent of the company’s total order book, estimated to be between Rs 9,000 crore and Rs 10,000 crore. The fiberisation projects involve laying high-capacity optic fibre cables across over 20 states in India, spanning approximately 15,000 kilometers to enhance telecom and network connectivity. Sterlite Technologies has a robust manufacturing presence with six plants in India.
