Sterlite Tech to sell telecom products & software biz to Skyvera LLC; shares fall

Shares of Sterlite Technologies Ltd (STL) were trading lower in the afternoon session today even as the global optical and digital solutions player said it has inked a business transfer agreement to sell its telecom products and software business to Skyvera LLC through its Indian subsidiary, by way of slump sale as a going concern basis.

Sterlite Technologies shares hit an intraday low of Rs 144.15, down 2.9% on the BSE.

The stock has lost 9.74% in the last 5 days. Sterlite Technologies shares have declined 38% in a year and fallen 17.63% this year.

Sterlite Technologies’ market cap fell to Rs 5,743 crore on BSE. Total 0.70 lakh shares of the firm changed hands amounting to a turnover of Rs 1.01 crore on BSE. The share hit a 52-week high of Rs 242.90 on April 22, 2022 and a 52-week low of Rs 128.60 on July 26, 2022.

In terms of technicals, the relative strength index (RSI) of the stock stands at 28.9, signaling it’s trading in the oversold zone. The stock has a one-year beta of 1.2, indicating very high volatility during the period. Sterlite Tech shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

“STL has signed an amended and restated agreement dated March 27, 2023 with Skyvera LLC and its Indian subsidiary in relation to transfer of the assets. It is clarified that the aggregate consideration being received by STL under the revised transaction structure remains the same”, the company stated.

Sterlite Technologies is a leading global optical and digital solutions company. In FY2022, its telecom products and software business had revenues of Rs 171.4 crore.

Skyvera LLC is an affiliate of TelcoDR, which is a US-headquartered global acquirer of telecommunication software businesses that operates telco software companies, by providing support and product innovation.

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