Shares of Sterlite Technologies zoomed 8% on Tuesday after the firm said it raised Rs 1,000 crore through a Qualified Institutional Placement (QIP) route. Sterlite Technologies shares gained 8.32% intraday to Rs 144.40 on Tuesday against the previous close of Rs 133.30 on BSE. Market cap of the firm rose to Rs 5753.26 crore. The stock touched its 52 week high of Rs 179 on September 11, 2023 and fell to a 52 week low of Rs 110 on March 27, 2024. The stock has fallen 11% in a year and lost 3.10% this year.
“The entire process saw healthy participation by highly reputed global and Indian investors, which is a testament to their confidence in STL,” said Sterlite Technologies in a communication to bourses.
Sterlite Technologies share sale was held at a floor price of Rs 119 per share. The company sold 22 percent equity stake via the institutional share sale (QIP). Promoter group entities held a 53.99 percent stake at the end of December 2023 quarter.
The company approved the issue and allotment of 8.84 cr equity shares to qualified institutional investors, including HDFC Mutual Fund, Nippon Life India, Goldman Sachs and Bandhan Mutual Fund, aggregating to Rs 1000 crore. Post the allotment, the paid-up equity share capital of the company has risen to Rs 97.5 crore, comprising 48.75 crore equity shares.
Ankit Agarwal, Managing Director, Sterlite Technologies said, “We are thankful to our investors for their continued support and for believing in the growth potential of Sterlite Technologies. The money raised through QIP will be utilised towards strengthening our balance sheet so that we double down on our purpose of transforming billions of lives by connecting the world.”
The QIP also has a 60-day lock-in period for any further share sale. Motilal Oswal and Nuvama were the book running lead managers for the QIP.
Sterlite Technologies stock has a one-year beta of 0.9, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Sterlite Technologies stood at 54.8, signaling it's trading neither in the overbought nor in the oversold zone.
Sterlite Technologies shares are trading higher than the 5 day, 20 day, 50 day, 100 day but lower than the 150 day and 200 day moving averages.
Sterlite Technologies is a global leader in end-to-end data network solutions. The company designs and deploy high capacity converged fibre cables and wireless networks. It has expertise ranging from optical fibre and cables, hyper-scale network.