Sterlite Technologies promoters to participate in the upcoming rights issue
Sterlite Technologies, a leading global provider of end-to-end solutions for the telecom industry, recently announced its plans for a rights issue of Rs 500 crore.
Sterlite Technologies, a leading global provider of end-to-end solutions for the telecom industry, recently announced its plans for a rights issue of Rs 500 crore.
A rights issue is a mechanism by which a company raises funds from its existing shareholders by offering them additional shares at a discounted price. This approach allows the company to raise funds without incurring high interest costs associated with other forms of borrowing.
The company also reported a mixed set of earnings for the December-ended quarter wherein the services business looks weak, down around 7.5 percent versus last quarter, but the optical business saw healthy growth both sequentially and year on year.
Speaking to CNBC-TV18 after the earnings report, Ankit Agarwal, MD of Sterlite Technologies said that the company is planning for a rights issue and the promoters will participate in the rights issue.
He said, “The quantum is Rs 500 crore and the promoters will be participating. We have a committee in place which will share the details in due course.”
It is worth noting that Sterlite Technologies has a net debt of approximately Rs 3,400 crore currently. The rights issue will provide the company with an opportunity to reduce its debt burden and strengthen its balance sheet, enabling it to invest in future growth initiatives.
Sterlite Technologies has a strong track record of delivering innovative solutions to its customers. The company's end-to-end portfolio includes optical communication products, network and system integration services, and digital networks solutions. It has a presence in over 100 countries and serves some of the world's largest telecom operators, governments, and enterprises.
The stock is down about 0.73 percent in last five days and 9.88 percent in a month.
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