STL successfully completes the demerger of its Global Services Business

STL [NSE: STLTECH], a leading optical and digital solutions company, has successfully completed the demerger of its Global Services Business. The services business will transition from Sterlite Technologies (STL) to STL Networks under the brand name "Invenia." This milestone marks the culmination of a strategic initiative to create two specialised, future-ready organisations poised for accelerated growth.

STL's demerged entity (now STL Networks) has delivered substantial value to its customers over the past decade. With its capability to build large-scale, IT infrastructure-led digital ecosystems, the business has been making significant strides in India and the UK. It has played a pivotal role in India's digital growth story, blending the spirit of nation-building and digital infrastructure creation. Over 1.35 lakh km of Optical Fibre network have been deployed nationwide in 23 states, positioning STL Networks as a trusted partner for delivering critical connectivity solutions.

This demerger is aligned with the long-term strategy of creating two highly specialised entities. This demerger will enable STL and STL Networks-to grow independently with enhanced agility and sharper focus on their respective customer segments, creating strong, distinct platforms for future growth. This will also bring more value to investors and strategic partners with a specific interest in the services business. Both businesses will have dedicated leadership teams with proven track records, ensuring a smooth transition and continued success. Rahul Puri will lead as the CEO of Optical Networking Business at STL, and Pankaj Malik will be the CEO of STL Networks.

With 10+ global manufacturing plants and a customer base spanning 100+ countries, STL is poised to lead the next wave of digital infrastructure innovation. As a trailblazer in Optical Networking, Optical Connectivity, Data Centres, and Enterprise solutions, STL will keep innovating with state-of-the-art products like Optical Fibre, Fibre Cable, and Optical Connectivity-engineered to set new benchmarks and power tomorrow's connected ecosystems. The demerged entity STL Networks, with its expertise in large-scale deployments, will further strengthen its portfolio in the global digital infrastructure and services space that will enable enterprises, telecom companies, cloud service providers, government, and defense. The recently awarded INR ~2600 Cr Bharatnet project in Jammu and Kashmir will be part of STL Networks post demerger.

The demerger is anticipated to drive profitability, enhance operational efficiency, and provide a more compelling investment opportunity for shareholders.

Ankit Agarwal, Managing Director of STL, commented, "The completion of this demerger marks a pivotal moment in our strategic roadmap. This transition empowers STL and STL Networks to operate with greater focus, agility, and independence, creating exceptional value for all stakeholders. STL remains committed to pioneering optical solutions and driving customer-centricity, while STL Networks is now uniquely positioned to redefine global services with agility. This new structure will drive sustained growth, operational efficiency, and shareholder returns for both entities."

Shares of Sterlite Technologies Limited was last trading in BSE at Rs. 80.96 as compared to the previous close of Rs. 82.63. The total number of shares traded during the day was 384158 in over 3060 trades.

The stock hit an intraday high of Rs. 86.73 and intraday low of 80.50. The net turnover during the day was Rs. 31974853.00.

Source : Equity Bulls

Keywords

SterliteTechnologies INE089C01029 STLTECH Demerger GlobalServicesBusiness