Sterlite Technologies soars nearly 13% on QIP announcement

Sterlite Technologies may offer a discount of not more than 5% on the floor price for the issue, which will be determined by the company in consultation with the book-running lead manager.

Shares of rose nearly 13% to Rs 146.40 after the board approved to launch of a Qualified Institutional Placement (QIP) at a floor price of Rs 119 per share

The company may offer a discount of not more than 5% on the floor price for the issue, which will be determined by the company in consultation with the book-running lead manager. The trading window for the stock was closed with immediate effect until April 15, 2024, for the purpose of the issue.

Sterlite Tech has recently announced orders worth Rs 900 crore in FY24 to provide integrated optical solutions to the leading service providers in the country and also its partnership with Vocus Group, a specialist fiber and network solutions provider in Australia in developing optical fiber solutions tailored to delivering high-speed connectivity across Australia.

The company posted a net loss of Rs 57 crore in the December quarter against a profit of Rs 34 crore in the September quarter of FY24. The company reported Rs 1,322 crore in revenue in the quarter ended Q3, with an order book of Rs 9,849 crore across its three business units. It also reported a sequential decline in revenue and EBITDA for the same period.

The company witnessed strong deal flow, and new customer acquisitions in the US and India across Technology and Services Industry verticals during FY24, it said in a filing to the exchanges. The management of Sterlite Technologies also expects revenue to decline for this fiscal, with a significant focus on net debt reduction for FY24.

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Source: Stocks-Markets-Economic Times