Sterlite Tech gets board nod to Rs 1,000-cr QIP, sets floor price at Rs 119 a share

The board of Sterlite Technologies Ltd has approved the float of a qualified institutional placement, the company said in an exchange filing. The proposed QIP has a floor price of Rs 119 per share which is a 6 percent discount to Monday's close of Rs 127.10 per share.

Sterlite Technologies intends to raise around Rs 1,000 crore through the QIP, CNBC-TV18 reported citing unidentified sources. The equity dilution pursuant to the institutional share sale (QIP) is likely to be 22 percent of the overall outstanding equity of the company, the report added. Based on the December-quarter shareholding pattern, promoter group entities held a 53.99 percent stake.

Further, there would be a 60-day lock-in period for any further share sale. Motilal Oswal and Nuvama are the book running lead managers for the QIP.

Sterlite Technologies recently announced receiving orders of Rs 900 crore for fiberisation projects from private telecom companies in FY 2024. This constitutes roughly 10 percent of the company's total order book, estimated at Rs 9,000-10,000 crore. Fiberisation involves laying high-capacity optic fibre cables along highways and roads to enhance telecom and network connectivity. STL's orders cover over 20 states across India, spanning approximately 15,000 kilometers. With six manufacturing plants in India, the company maintains a robust manufacturing presence.