Corporate restructuring Sterlite Power has always been at the forefront of technology in all phases of transmission project development, from concept to commissioning. If leaving a lasting impact on society serves as motivation for you, a career at Sterlite Power can be very rewarding. Post this, as of 31st March 2015, on a proforma basis STL will retain a consolidated net debt of Rs. The award of this Project provides great scope to diversify into the growing sector of Power Transmission with many similar opportunities available in future.”, Sterlite Technologies Limited (formerly, Sterlite Optical Technologies Ltd) is a leading global provider of transmission solutions for the energy and telecom industries. Currently, both the Telecom business and Power Products and Transmission Grid are housed under the same company though operates as separate business units. The demerger will essentially provide two separate and distinct platforms, one for Telecom business, which is in a high growth stage in the backdrop of huge data consumption opportunity and the other for Power business, which will be a strategic vehicle for the creation of infrastructure assets in the growing transmission sector. allowing each business to create a strong and distinct platform which enables greater flexibility to pursue long-term objectives; enabling accelerated growth of the telecom business and allowing the power business to explore suitable strategies to fund its growth plans; offering shareholders a clear focused investment opportunity in the telecom sector and thereby unlocking the value of their holding; and. Sterlite Technologies Limited (STL) is a BSE and NSE listed Company that shares the same lineage as the US $13 Bn Vedanta Group. Sterlite Power has parted with debt of Rs 5,500 crore out of total debt of Rs 6,500 crore that was in the books of Sterlite Technologies. The company extensively uses aviation technologies such as drones, LiDAR and heli-stringing for undertaking surveys, finalising route alignments, and execution. Sterlite Power commissioned its fifth project. The project, costing about Rs. The Company has a Global sales presence with sales offices in countries like China, India, Netherlands, Russia, South Africa, Turkey, UAE, and the UK. 800 crores, was won by Sterlite on the basis of its technical and financial credentials through a Tariff based Bidding Process conducted by PFC. One needs to examine whether exit option offered to shareholders is reasonably considering delisting regulations and takeover regulations. Volcan Investments is also the parent company of Vedanta Group. Sterlite Technologies Limited is a leading global provider of transmission solutions for the telecom and power industries. "Sterlite Technologies has retained 1500-1600 people while about 700 employees are with Sterlite Power," Anand Agarwal said. STL is among the global leaders in all its business areas of Optical Fiber, Fiber Optic Cables Power Conductors, and HV / EHV Power Cables. Sterlite Power and Sterlite Technologies are pioneers in power and data transmission products and solutions with a global presence in over 100 countries. of equity shares held by public shareholders in STL, No. Point of Interest: Sterlite’s stock surged 10% after it was awarded an advance purchase order to design, build and manage the Indian Navy’s communications network. Sterlite Technologies Limited (SGL) develops & delivers products, solutions and infrastructure for telecom & power transmission networks, globally. Sterlite Technologies is a significant contributor to the global power sector through indigenous manufacturing of a complete range of high voltage power transmission conductors at Extra High Voltages (400kV – 800kV), High Voltages (66kV – 220kV) and power distribution conductors (11kV- 33kV). Sterlite Grid successfully commissions project September 18,2013. AMP Capital and Sterlite Power will invest $150 million each on the development of 1,800 km of transmission lines. The Company is India’s market leader and will be the Largest Manufacturer Globally of overhead transmission power conductors in 2010. 112.30. You must not reproduce, duplicate, copy, sell, resell or exploit any material on the Website for any commercial purposes.We have made a sincere effort to ensure that all photographs used on this website are either freely available in the public domain or used with permission. For every 5 equity shares held in STL, investors will retain 5 shares of STL+ option to receive either: The value of the demerged undertaking after taking into consideration the allocation of debt would be Rs. The project has been awarded to Sterlite Technologies on a ‘Build, Own, Operate and Maintain’ (BOOM) basis, wherein the transmission lines would be commissioned within 3 years and the Company would operate and maintain the same for a minimum tenure of 22 years thereafter. 1 ELECTION NOTICE THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION Dear Eligible Member, This Election Notice is sent to you pursuant to the Scheme of Arrangement between Sterlite Technologies Limited (“STL/ Company”) and Sterlite Power Transmission Limited (“SPTL/ Resulting Company”) and their respective shareholders and Sterlite Power was awarded its eleventh project of length 821 ckms in the North Eastern Region. In 1992 Maharashtra Industrial Development Corporation (MIDC) allotted plot in Ratnagiri district's Zadgaon village.On December 13, 1993, over 30,000 people of the city marched to the unit and demolished the quarters for the construction workers and some other structures. The promoters of STL which account for 54.82% will be compulsorily allotted equity shares in STPL, i.e. It is amongst the most integrated optical fiber manufacturers globally and amongst the Top 3 global providers of overhead transmission power conductors. Sterlite Power’s Convergence business unit connects 94 districts and 393 towns with 6,816 km of reliable OPGW network. Sterlite Technologies will be demerging its power and telecom businesses in order to focus on each separately. Sterlite Technologies Shareholding Pattern - Promoter and Promoter Group - September 2019. All pages of the Website are subject to our terms and conditions and privacy policy. The East-North interconnection mega transmission project, which aims to evacuate power from the North-East and Eastern states to the Northern region of India is the first Mega Independent Power Transmission Project to be awarded in India. Further, both businesses have now reached a meaningful scale and will be able to benefit by becoming independently focused businesses. Sterlite Technologies Ltd (Sterlite) is set to spin-off its power business into a separate unlisted company, while retaining its telecom business in the listed entity. The demerger will be effective from April 1, 2015, subject to all necessary approvals. In future, the power business (STPL) can be merged with Vedanta, thereby maintaining the promoter’s stake. Its joint ventures include – China -75%:25% with Tongguang for drawing optic fiber and Brazil -50:50 JV with Conduspar for fiber cabling. It is India's only manufacturer of integrated optical fiber. Sterlite Technologies Limited “Sterlite”, a leading global provider of transmission solutions for the power and telecom industries, announced that the Company has been awarded the Letter of Intent by Power Finance Corporation Limited (PFC) for its East … Why not demerge the power business directly into Vedanta? This enables telcos leverage our OPGW fiber-based utility network to meet the growing broadband demands in the country. STL - Sterlite Technologies Limited (Formerly Sterlite Tech) NSE: STLTECH formed in 1988 is a digital technology company with offices in India, China, US, SEA, Europe and MEA. [(3940.6*54.82%)/5]. The company has over 1500 full-time employees. He has paved the way for Sterlite Power and Sterlite Technologies to be the pioneers in power and data transmission products and solutions globally in over 100 countries. Another question that can be asked is why demerge the power business into a separate company? Equipped with a product portfolio that includes power conductors, optical power ground wire, EHV/HV power cables, optical fibers, telecommunication cables and a comprehensive telecom systems / solutions portfolio, Sterlite’s vision is ‘Connect every home on the planet’. Sterlite Technologies Limited “Sterlite” [BSE: 532374, NSE:STRTECH], a leading global provider of transmission solutions for the power and telecom industries, announced that the Company has been awarded the Letter of Intent by Power Finance Corporation Limited (PFC) for its East-North interconnection mega transmission project. The company is heavily debt-ridden and on redemption, net worth will come down to almost nil (without considering a further issue of capital). Redemption of preference shares can be done only out of profits or fresh issue of capital. STL Tech has expertise ranging from connectivity and access solutions, hyper-scale network design and deployment, programmable networks, to AI powered digital solutions. At Sterlite Power, work is driven by a strong focus on social impact, overcoming obstacles and innovation to find solutions to complex workplace challenges. Copyright © 2021 M&A Critique!. Sterlite Power Transmission Ltd. (SPTL) demerged from Sterlite Technologies Ltd. (STL) IndiGrid was formed as a registered trust, filed DRHP with SEBI. He has been instrumental in the growth of the company’s telecom and power businesses. As a result of the restructuring, Sterlite Technologies Limited will become a pure-play Telecom Products & Solutions company providing Broadband Solutions for Fully Converged Networks. 469 crores. Sterlite Technologies Limited (STL) develops & delivers products, solutions and infrastructure for telecom & power transmission networks, globally. Details of the owner of Sterlite Technologies (Wiki) Dr. Anand Agarwal has been the CEO of Sterlite Tech since 2003. The current status of Sterlite Technologies Limited is - Active. As on date power business is not making money so the option is to raise further capital before redemption of preference shares. The businesses are well poised in their respective segments with multiple growth drivers. The decision to keep the equity shares of the power business unlisted is in line with the global model for such infrastructure companies, which are not amiable to quarterly public market reporting requirements and need operational freedom and capital structure flexibility. 2 would be allotted at the premium of Rs. Moreover, the capital intensity and return profiles of this business are very different and do not enjoy material synergistic benefits from being housed together. It develops & delivers products, solutions, and infrastructure for telecom & power transmission networks, globally. 4207 crores against a net worth of Rs. STL is among the global leaders in all its business areas of Optical Fiber, Fiber Optic Cables, Power Conductors and HV / EHV Power Cables through its operations in India, China & Brazil. Sterlite Technologies Q1 FY 14 profitability at Rs. For more information, please visit www.sterlitetechnologies.com, Contact STL is among the global leaders in all its business areas of Optical Fiber, Fiber Optic Cables, Power Condctors and HV/EHV Power Cables through its operations in India, China & Brazil. The equity in Power business will mostly be held by promoters. New Delhi: Sterlite Technologies (STL) is planning to spend at least ₹300 crore to boost its optic fibre cable production capacity to tap into demand for the product expected to rise to nearly 25 million fibre kilometres (fkm) by 2022 given it’s key for high-speed data connectivity and 5G networks, a top company executive said. "The demerger scheme was earlier approved by the High Court of Mumbai on April 22, 2016, post approval by all relevant stakeholders of Sterlite Tech on December 15, 2015," Sterlite Technologies said in a BSE filing. 110.30), Amount per share to be given on redemption after 18 months, The total amount that STPL would have to pay to shareholders on redemption after 18 months. STL is the worlds leading data innovator. 4881 crores. By clicking Login, you agree to the Mnacritique, Validity of BuyBack Of Shares-Section 230, Companies Act 2013, No. This question becomes more relevant if in near future Vedanta subscribes to the further issue of equity capital to facilitate redemption of preference shares or even before redemption the scheme to merge STPL with Vedanta is announced. Link to the Actual News Post on Sterlite’s Website. The Company has over 50 patents in its name in USA, EU, India and China. Sterlite Copper is a subsidiary of Sterlite industries, a company owned by Vedanta Limited.. Overview. Sterlite Power Transmission Ltd (STPL)is a public company recently incorporated to carry on the business, of manufacturing of power transmission products such as power conductors and high voltage and extra high voltage cables, providing turnkey solutions for power industries and participating in the creation of power transmission infrastructure across the country. If you believe your work is being used inappropriately, please let us know and we will address the matter immediately. The shareholders have been given an exit option to choose to depend on their investment preference but considering STPL shares are not going to be listed, it works out as compulsory exit without following delisting guidelines. Considering the differentiated attributes, the inherent business models and capital requirement of each of this business, the equity shares of the telecom business will continue to be publicly listed, while those of the demerged power business will remain unlisted. Non- resident shareholders excluding FPIs shall be issued equity shares of STPL and they shall sell the same to promoters and/ or their affiliates. The direct demerger would have given the shareholders of STL an opportunity to hold shares in Vedanta. The corporate restructuring is a potential value creator for all shareholders combined with an objective of bringing a sharper and independent focus on both the segments, which have reached a certain scale and addressing two distinct opportunities of sustainably large magnitudes. The company has its name listed at National Stock Exchange and Bombay Stock Exchange. The Ministry of Power, Government of India, has initiated a scheme for development of Independent Power Transmission projects through private sector participation, for evacuation of power from the generation stations, strengthening of the grid and transmission of power from pooling stations to the other grid stations and load centres. STL - Sterlite Technologies Limited | 163,085 followers on LinkedIn. The Power business would have a debt of Rs. Sterlite Technologies helps Tata Power augment power carrying capacity for a critical Mumbai line August 13,2013. Sterlite Power is a leading global developer of power transmission infrastructure with projects of over ~12,500 circuit km and 22,719 MVA in India and Brazil.. With an industry-leading portfolio of power conductors, EHV cables, and OPGW, Sterlite Power also offers solutions for upgrading, praying, and strengthening existing networks. As per the restructuring scheme, STPL equity shares would remain unlisted, thus it would be more beneficial for the public shareholders to opt for the RPS. Sterlite Technologies Limited's operating revenues range is Over INR 500 cr for the financial year ending on 31 March, 2019. Mr. Agarwal is a dedicated philanthropist at heart and believes in safeguarding society's most vulnerable sections and protecting humanity's long-term prospects. Sterlite Technologies will be demerging its power and telecom businesses in order to focus on each separately. So it will be a challenge to explain to secured creditors and lenders and get their approval to the scheme without offering other securities and guarantees. allowing shareholders an option to align with their investment philosophy by continuing to participate in the long-term capital-intensive power sector if they choose or select available options to fairly and appropriately exit. Holding unlisted equity shares won’t be beneficial considering the capital gains implications as well as difficulty in selling the unlisted shares in future. Under his leadership, the Company has grown from an optical-fiber manufacturer to one of the leading global providers of products, solutions, and services for telecom and power industries. The Board has approved to demerge the Power Products Business and the Power Transmission GridBusiness into a separate entity named ‘Sterlite Power Transmission Ltd.’. Sterlite Technologies Limited has eight directors - Anil Kumar Agarwal, Arun Todarwal Lalchand, and others. Sterlite Power overcame inefficiencies of conventional design and construction modeling methodologies with 3D and 4D BIM technology to enhance visualization, collaboration, and efficiency Project timeline acceleration had a positive impact on the ROI and enabled faster delivery of reliable power to over 30 million people We believe SEBI and stock exchange approval may not come in easily. The deal was worth a whopping 3500 Crores. The share entitlement ratio report has been prepared by Price Waterhouse & Co LLP with a fairness opinion done by Axis Capital who are acting as financial advisers to STL. Sterlite Technologies Limited is a leading global provider of transmission solutions for the telecom and power industries. 70 per share will end up incurring loss based on cost allocated to STPL shares ( which will be 40%+ of the purchase price). 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