Sterlite Technologies’ share price jumped almost 6 per cent in intraday trade on the BSE on Tuesday, April 1, after the company announced the completion of the demerger of its global service business. Sterlite Technologies’ share price opened at ₹81.50 against its previous close of ₹80.96 and jumped 6 per cent to the level of ₹85.80. Around 1:35 PM, the stock traded 4.46 per cent up at ₹84.57.
Sterlite Technologies global service business demerger details
During market hours on April 1, the company announced through an exchange filing that it had successfully completed the demerger of its global services business.
The company’s services business will transition from Sterlite Technologies to STL Networks under the brand name “Invenia.”
“This milestone marks the culmination of a strategic initiative to create two specialised, future-ready organisations poised for accelerated growth,” said the company.
According to the company, the demerged entity- STL Networks- has delivered substantial value to its customers over the past decade.
“With its capability to build large-scale, IT infrastructure-led digital ecosystems, the business has been making significant strides in India and the UK. It has played a pivotal role in India’s digital growth story, blending the spirit of nation-building and digital infrastructure creation,” said the company.
“Over 1.35 lakh km of optical fibre network have been deployed nationwide in 23 states, positioning STL Networks as a trusted partner for delivering critical connectivity solutions,” the company said.
This demerger will enable STL and STL Networks—to grow independently with enhanced agility and sharper focus on their respective customer segments. Both businesses will have dedicated leadership teams. Rahul Puri will lead as the CEO of Optical Networking Business at STL, and Pankaj Malik will be the CEO of STL Networks, said the company.
Sterlite Technologies shares have remained under pressure over the last year, falling 27 per cent. The stock recently hit a 52-week low of ₹77.50 on March 17. It hit a 52-week high of ₹155.25 on July 30 last year.
Read all market-related news here
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
