NewsCorporate ActionsSTL Networks Debuts on Stock Exchange, Closes 5% Lower Amid Growth ProjectionsSTL Networks Debuts on Stock Exchange, Closes 5% Lower Amid Growth Projections
STL Networks Ltd, recently demerged from Sterlite Technologies, made its stock market debut. Shares opened at ₹22.90 on NSE but closed at ₹21.75, down 5%. The company reported revenue of ₹1,180 crore, EBITDA of ₹81 crore, and an order book of ₹4,249 crore. Major projects include a ₹2,631 crore BharatNet III project in J&K. Vice-Chairman Ankit Agarwal projects revenue growth to over ₹2,000 crore and margin improvement to 10-12% within 2-3 years.
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STL Networks Ltd, a digital infrastructure and IT services company recently demerged from Sterlite Technologies, made its debut on the stock exchange with mixed results. The company's shares opened at ₹22.90 on the National Stock Exchange (NSE) but closed at ₹21.75, marking a decline of over 5% from its listing price.
Listing Details and Shareholder Allocation
As part of the demerger process, shareholders of Sterlite Technologies received one share of STL Networks for each share they held in the parent company. This allocation strategy aimed to provide existing investors with a stake in the newly formed entity.
Financial Performance and Order Book
STL Networks reported robust financial figures:
| Metric | Value |
|---|---|
| Revenue | ₹1,180.00 crore |
| EBITDA | ₹81.00 crore |
| Order Book | ₹4,249.00 crore |
The company's substantial order book indicates a strong pipeline of projects, potentially supporting future growth.
Major Projects
STL Networks has secured several significant projects, showcasing its capabilities in the digital infrastructure sector:
- BharatNet III project in Jammu & Kashmir, valued at ₹2,631.00 crore
- PowerGrid data centre contract worth ₹359.00 crore
- MSSS initiative in Bihar, amounting to ₹205.00 crore
These projects demonstrate the company's ability to secure large-scale contracts across various regions and sectors.
Growth Projections
Vice-Chairman Ankit Agarwal expressed optimism about the company's future, projecting significant growth in both revenue and profitability:
- Revenue target: Scaling from ₹1,300.00 crore to over ₹2,000.00 crore within 2-3 years
- Margin improvement: Expected to rise from the current 6-7% to 10-12%
Agarwal also indicated that the company anticipates securing substantial orders in the upcoming two quarters, which could further bolster its growth trajectory.
Market Outlook
Despite the initial dip in share price on its debut, STL Networks' management remains confident about the company's prospects. The robust order book and ambitious growth targets suggest that the company is positioning itself as a significant player in the digital infrastructure and IT services sector.
As STL Networks navigates its journey as a standalone entity, investors and market watchers will likely keep a close eye on its ability to execute ongoing projects, secure new orders, and meet its projected financial targets in the coming quarters.
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