Shares of optical fiber cable company Sterlite Technologies hit their highest level since May 2022, rising more than 10 percent on June 12 - its best day in three years - after bagging a Rs 2,631 crore BharatNet contract from BSNL via a consortium with Dilip Buildcon.
Sterlite Tech saw trading volumes of more than 1.18 crore shares, which is 12.6x the 30-day moving average. Shares of Dilip Buildcon too are higher by a percent.
The contract, procured via Sterlite Tech's demerged global services business vertical will be for the Design, Supply, Construction, Installation, Upgradation, Operation and Maintenance of the middle mile network in the said circles. Read More
The order will require three years for construction, and ten years of maintenance contract, STL said, involving Rs 1620.50 crore in capex, operating expenditure of Rs 972.30 crore for newly constructed network and Rs 38.33 crore as opex for existing network.
"...the next big kicker will be the BharatNet Phase III. What has been launched so far is by the central government. On top of that, we also expect a few more states to launch their own BharatNet phase III. So, I think there will be multiple opportunities which ultimately will take the fiber to every village in India. What we ourselves are taking responsibility for in Jammu Kashmir will be to take fiber to every village in Jammu Kashmir," said Ankit Agarwal, the managing director of Sterlite Tech after the March quarter earnings.
Last year in November, Sterlite Tech had emerged as lowest bidder for orders of optic fiber networks under the BharatNet phase 3. In 2023, the Cabinet had approved an outlay of Rs 1.39 lakh crore for BharatNet, a government project for last-mile connectivity across 6.4 lakh villages.
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