Stocks

Sterlite Technologies jumps nearly 9%

BL Internet Desk July 9 | Updated on July 09, 2018 Published on July 09, 2018

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Shares of Sterlite Technologies rose nearly nine per cent as the company’s unit has agreed to buy European specialised optical cable maker Metallurgica Bresciana.

After opening the session on a bullish note, the stock climbed as much as 10.25 per cent to Rs 319.80. It finally settled higher by 8.62 per cent at Rs 315.05.

On the NSE, the stock ended at Rs 315.20, up by 8.84 per cent over the previous close. The stock touched intra-day high of Rs 319.70 and a low of Rs 296.30. In terms of volume, 9.15 lakh shares changed hands on the BSE, while 67.14 lakh stocks were traded on the NSE.

Sterlite Technologies has signed an agreement to acquire Italy-based specialised optical cable manufacturer Metallurgica Bresciana S.p.A. for €47 million in an all-cash deal.

The acquisition, which will bring in new products and customers, will be done through the company’s wholly-owned Italian subsidiary Sterlite Technologies SpA. The deal is expected to close in two weeks, Sterlite Technologies said in a regulatory filing.

The deal will help Sterlite add 3 million fibre km cabling capacity to its existing 15 million fkm capacity. Sterlite Technologies will fund the acquisition through a combination of euro debt instruments and internal accruals.

According to Emkay Global, the acquisition should help the company to penetrate deeper into fast growing European market. The brokerage has maintained 'Buy' on the stock with a price target of Rs 500.

The stock had fallen 1 per cent this year up to Friday's close.

(With inputs from Agencies)

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Published on July 09, 2018
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