Sterlite Tech advances after completing acquisition of Elitecore Technologies

Sterlite Technologies rose 2.55% to Rs 88.45 at 15:00 IST on BSE after the company completed the 100% acquisition of Elitecore Technologies.

The company made announcement during market hours today, 30 September 2015.

Meanwhile, the S&P BSE Sensex was up 334.68 points or 1.3% at 26,113.34.

On BSE, so far 3.35 lakh shares were traded in the counter as against average daily volume of 7.26 lakh shares in the past one quarter.

The stock hit a high of Rs 88.80 and a low of Rs 85.40 so far during the day. The stock had hit a 52-week high of Rs 109.90 on 4 August 2015. The stock had hit a 52-week low of Rs 48.45 on 27 March 2015.

The stock had outperformed the market over the past one month till 29 September 2015, rising 15.62% compared with 2.33% fall in the Sensex. The scrip had also outperformed the market in past one quarter rising 7.54% as against Sensex's 6.75% fall.

The mid-cap firm has equity capital of Rs 78.92 crore. Face value per share is Rs 2.

Sterlite Technologies said it acquired a global telecom software product company, Elitecore from First Carlyle Ventures Mauritius (whose affiliate is advised by The Carlyle Group) and other shareholders. The acquisition has been completed in accordance with the terms set out in the agreement announced on 22 September 2015. Going forward, Elitecore is proposed to be merged into Sterlite.

The acquisition of Elitecore is in line with Sterlite's overall strategy of widening its telecom portfolio of offerings to its global customers. In addition to its current offerings comprising optical products and allied system integration services, Sterlite will now offer industry leading software solutions for operations support, business support and revenue management. The addition of Elitecore's operation will offer significant impetus to Sterlite's efforts to scale up the contribution from services and solutions in its revenue mix to complement the large and high-growth optical products business.

On a consolidated basis, Sterlite Technologies reported net loss of Rs 11.34 crore in Q1 June 2015 compared with net loss of Rs 11.88 crore in Q1 June 2014. Total income rose 69.9% to Rs 990.94 crore in Q1 June 2015 over Q1 June 2014.

Sterlite Technologies (STL) develops & delivers products, solutions and infrastructure for telecom & power transmission networks, globally.

Powered by Capital Market - Live News