STL Raises Rs 1,500 Crore Through QIP to Reduce Debt and Support Next Phase of Growth

STL has raised Rs 1,500 crore through a Qualified Institutions Placement (QIP), with participation from domestic and global institutional investors.

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Key Highlights

  • STL has raised Rs 1,500 crore through a Qualified Institutions Placement (QIP) with participation from domestic and global institutional investors.
  • The company allotted 2.57 crore equity shares to qualified institutional buyers, taking its paid-up equity share capital to Rs 102.78 crore.
  • The QIP proceeds will primarily be used to reduce debt, strengthen STL's balance sheet and support the company's next phase of growth.
  • The capital raise reflects investor confidence in STL's vertically integrated "Glass to Terabit" capability and its more than 30 years of experience in optical connectivity solutions.
  • STL expects growing demand for optical connectivity products, driven by AI data centre deployments, telecom network expansion and large-scale government digital infrastructure programmes.

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The company said the QIP saw participation from investors including Motilal Oswal, Nomura, HSBC, Bank of India, Oxbow, Think Investments, Bandhan and Manulife, among others.

STL Allots 2.57 Crore Equity Shares

As part of the QIP, STL allotted 2.57 crore equity shares to qualified institutional buyers, aggregating to Rs 1,500 crore. Following the allotment, the company’s paid-up equity share capital has increased to Rs 102.78 crore, comprising 51.39 crore equity shares.

Funds to Strengthen Balance Sheet

STL said the proceeds from the QIP will primarily be used to substantially de-leverage the company’s balance sheet. The company added that this will enhance its financial strength and create a platform to fund the next phase of growth.

The company said the response to the QIP reflects investor confidence in STL’s over 30 years of experience in optical connectivity products, its vertically integrated “Glass to Terabit” capability and growing demand for optical connectivity products.