Sterlite Tech to transfer digital biz to subsidiary

Sterlite Technologies ("STL") has signed a business transfer agreement to transfer its digital business undertaking to wholly owned subsidiary, STL Digital, as a going concern on a slump sale basis.

STL Digital is engaged in the areas of business of IT/ITES, the professional and consultancy services including cloud services, other services relating to IT/ITES.

The digital business undertaking is currently operated as one of the business divisions of STL performing its business in areas of IT/ITES, professional and consultancy services including cloud services, other services relating to IT/ITES. The digital business undertaking is on a growth trajectory and offers significant potential for future growth. Digital business contributed 0.03% of the STL's total income as on 31 March 2022.

The company received consideration of Rs 15 crore for transfer of digital business, subject to working capital adjustments as on the closing date as per the terms of business transfer agreement. It is expected to be completed on or before 1 April 2023.

Since the transaction is between the holding company and its wholly owned subsidiary the following transaction is related party transaction. There will not be any change in the shareholding pattern of the company pursuant to the slump sale.

Sterlite Technologies is a leading end-to-end solutions provider for global digital networks.

Sterlite Technologies reported a consolidated net profit of Rs 50 crore in Q3 FY23 as against a net loss of Rs 138 crore recorded in Q3 FY22. Revenue from operations surged 46.23% to Rs 1,882 crore in the quarter ended 31 December 2022 from Rs 1,287 crore posted in Q3 FY22.

The scrip declined 3.06% to Rs 155.30 on the BSE.

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