New Delhi, 3rd November 2023: Sterlite Power Transmission Limited (SPTL), a leading power transmission developer and solutions provider in India and Brazil, announced the strategic decision to demerge its Power Transmission Infrastructure business (BOT model), spread across India and Brazil. The demerged SPTL entity will continue to hold the Global Products & Specialised EPC Services business as well as the Convergence – Fiberco business.
This move comes as part of the Company’s intent to create ‘pure play’ business verticals based on their end-customer base, investor class and returns.
Commenting on the development Pratik Agrawal, Managing Director, Sterlite Power Transmission Limited, said, “The demerger will enable both entities to create independent capital structures, unlock value and attract investors suitable for the distinct growth profiles for each entity. We are confident that this will bring substantial value for our shareholders and help us in creating two world class business entities.”
Globally, the power transmission network is expected to double in the next 8 years to meet aggressive renewable energy additions. The demand for Power Products is expected to remain strong over the medium term on the back of healthy demand, amid aggressive global capex earmarked for Renewables capacity addition, T&D expansion, benefits from ‘China+1’ theme and favourable tariff structures in the US.
The Power Transmission Infrastructure business encompasses the transmission assets in India and Brazil, which will now be transferred to Sterlite Grid 5 Limited (SGL 5). Both SPTL and SGL5 will have independent Boards and focused executive management teams. Under the Board of Directors-approved Demerger scheme, existing Sterlite Power shareholders will receive one additional share of SGL5 for every share of SPTL they hold.
The company has filed the Demerger scheme with National Company Law Tribunal (NCLT) Mumbai for approval. The approval process is expected to be concluded within the next 6 to 8 months, as it entails securing a range of approvals, including those from shareholders, creditors, and various regulatory authorities.
About Sterlite Power:
Sterlite Power is a leading private sector power transmission infrastructure developer and solutions provider with a robust portfolio of 32 completed, sold and under construction projects covering approximately 15,350 circuit Kms of transmission lines across India and Brazil. Sterlite Power is also a market leader of high-performance power conductors, extra-high voltage (EHV) cables and optical ground wires (OPGW). The Company provides bespoke solutions for the upgrade, uprate, and fiberization of existing transmission infrastructure projects. Advancing the transition towards a green energy-efficient future, Sterlite Power has an increasing focus on integrating renewable energy into the grid. It is the first transmission player to launch InvIT in the power sector, listed on the BSE Limited and the National Stock Exchange of India Limited. The Company has been recognized as the ‘Power Transmission Company of the Year’ at The Economic Times Energy Leadership Summit 2023 and is a recipient of international awards from S&P Platts as well as International Project Management Association (IPMA). For more details, please visit https://www.sterlitepower.com/
Sterlite Power: Shreyosi Sen firstname.lastname@example.org