Vedanta to sell 25% stake each in 3 Sterlite Technologies units

Vedanta Group is in discussion with strategic investors to sell 25% stake in each of the three business units of Sterlite Technologies Ltd. Sterlite Technologies has three business units, which includes the telecom network services business, optical fibre manufacturing, and software services.

The company is bringing in partners in each of these businesses individually and looking to offload approximately 20%-25% equity. There is an enormous demand for investment in these businesses. The process is on, and a banker has been appointed. The company is looking at a valuation of $2 billion in each of these businesses, Anil Agarwal, Chairman, Vedanta Group, told the media.

STL recently announced the appointment of three Chief Executive Officers to lead the businesses. Praveen Cherian has been appointed as the network services business CEO, and Raman Venkatraman has come in from Tata Consultancy Services to take over as the software business CEO. STL had appointed Paul Atkinson as the Chief Executive Officer for its Optical Networking Business in September. The promoter group owns about a 54% stake in STL, while the balance is with the people.

STL is now looking at new opportunities in the 5G telecom networking space. It is one of the indigenous companies that has developed homegrown 5G-ready solutions utilising open source technologies. The company is looking to extend its operations in international markets as well.

In March, STL announced major new deals and extensions to existing engagement with leading telcos in the Middle-East and Africa region (MEA). The deals worth above $100 million take STL’s order book to a record high of Rs 11,300 crore. The multi-year deals vary from providing optical connectivity solutions to network solutions.

The company announced the acquisition of Clearcomm Group Ltd, a UK-based network integration company, as part of a global strategy last year. However, the company had reported a net loss of Rs 140 crore in the third quarter ended December 31, 2021.

On Thursday, STL’s shares closed up 1.70% to Rs 206.6 apiece on the Bombay Stock Exchange (BSE).

Image Source

---

Also read: Vedanta to invest $15 bn in semiconductor, display unit ventures