Penny Stock Under Rs 90 with Rs 4,378 Crore Order Book: Optical Cable Manufacturer Enters into Agreement with BSNL Worth Rs 2,631.14 Crore

The shares of the company saw a spurt in volume by more than 25 times on BSE.

On Thursday, shares of Sterlite Technologies Ltd gained 15.22 per cent to Rs 88.79 per share from its previous closing of Rs 77.06. The stock’s 52-week high is Rs 115.97 while its 52-week low is Rs 53.90. The shares of the company saw a spurt in volume by more than 25 times on the BSE.

Sterlite Technologies Limited (STL), in a consortium with Dilip Buildcon Limited, has entered into a significant agreement with Bharat Sanchar Nigam Limited (BSNL) on June 11, 2025. This domestic contract pertains to the comprehensive design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under the BharatNet initiative for the Jammu & Kashmir and Ladakh Telecom Circles, specifically Package 13.

The total commercial consideration for this order is a substantial Rs 2631.14 crores (inclusive of GST), broken down into Rs 1620.50 crores for Capex, Rs 972.30 crores for Opex of the newly constructed network, and Rs 38.33 crores for Opex of the existing network. The project has a construction period of three years, followed by a ten-year maintenance contract. Due to a recent Scheme of Arrangement effective March 31, 2025, STL's Global Services Business has been demerged into STL Networks Limited, and this agreement will accordingly be novated to STL Networks Limited upon completion of necessary formalities.

About the Company

Sterlite Technologies Limited was established in July 2001 after the demerger of the telecom division of Sterlite Industries Ltd (SIL). In July 2006, STL acquired the transmission line business of SIL to foray into the power transmission cables business. STL has grown over the years to become the largest optical fibre and optical fibre cable manufacturer in the country. The company also has a sizeable presence in overseas markets with an established presence in the global optical fibre market.

As of March 31, 2025, the company’s order book stood at Rs 4,378 crore, which is spread across its three business units- Optical Networking, Global Services and Digital. The stock is up by 65 per cent from its 52-week low of Rs 53.90 per share.

Disclaimer: The article is for informational purposes only and not investment advice.