Sterlite Tech up 7% on emerging L1 bidder for over Rs 1 bn-order from BSNL

Sterlite Technologies shares gained 7 per cent on Friday and registered an intraday high of Rs 130.75 per share on BSE. The buying interest sparked after the company emerged as the lowest (L1) bidder for the development of the middle mile network of Bharat Net for Bharat Sanchar Nigam Limited (BSNL).

 

Around 10:29 AM, Sterlite Technologies shares were up 5.65 per cent at Rs 129 per share on BSE. In comparison, the BSE Sensex was down 0.02 per cent at 79,529.68. The market capitalisation of the company stood at Rs 6,291.96 crore. The 52-week high of the stock was at Rs 162.95 per share on BSE and 52-week low of the stock was at Rs 109.8 per share.

 

"Sterlite Technologies Limited hereby submits that it emerged as L1 bidder from Bharat Sanchar Nigam Limited (BSNL) for “Development (Creation, Upgradation and Operation & Maintenance) of Middle mile network of Bharat Net on Design Build Operate and Maintain (DBOM) Model” – Package 13 (Jammu & Kashmir)," the filing read.

 

The contract is for 3 years of construction and 10 years of maintenance contract at 5.5 per cent per annum of capex for the first 5 years and 6.5 per cent per annum of capex for the next 5 years. The order is worth over Rs 1 billion.

 

In October, the company officially entered the artificial intelligence AI-led Data Centre segment by showcasing its comprehensive range of integrated optical cable, connectivity, and interconnect offerings at the India Mobile Congress 2024. The Union Telecom Minister, Jyotiraditya Scindia, inaugurated the Make-in-India AI-DC portfolio.

 

“As data centres shift to GPU-based servers, the need for fibre optic infrastructure is anticipated to increase significantly. India is emerging as a major hub for data centre ecosystems, with estimates suggesting a boost in GPU-based server capacity to nearly 520,000 GPUs by 2026. These GPU-centric facilities will require 36 times more fibre than traditional CPU racks due to higher server density and bandwidth demands, necessitating more compact, high-density optical fibre cables,” the company said.

 

Sterlite Technologies Limited (often written as Sterlite Tech), an Indian multinational company that provides end-to-end data network solutions for communications and power utilities. 

 

In the past one year, Sterlite Technologies shares have gained 5.1 per cent against Sensex's rise of 22.4 per cent.