Sterlite Power Demerger: Sterlite Electric & Grid 5

Sterlite Power is a power transmission-focused group with operations across transmission infrastructure and products/EPC-led solutions. As part of a group restructuring, these businesses were separated into two different entities under a demerger scheme.The easiest way to understand it is this:

• One part of the business was carved out into a separate company (the “resulting company”).

• The remaining business continued under the original company, which later changed its name.
  

Below is a clear, step-by-step explanation of what changed and why the same group is now referenced under different names.

What Sterlite was before the split

Before the restructuring, Sterlite Power Transmission Limited operated across two broad buckets:

1. Infrastructure (BOT) / transmission development – the business involved in developing and holding transmission assets

2. Products + specialised EPC + convergence – manufacturing and execution-led businesses such as conductors/cables, select EPC work, and telecom-related infrastructure services
   

Over time, these two buckets started looking like very different businesses under one roof, which is where the demerger came in.

What a “demerger” actually means

A demerger is a court-approved restructuring where a business division (along with its assets and liabilities) is moved into another company.

Two dates usually confuse people:

• Appointed date: the accounting cut-off date from which the business is treated as transferred for the scheme’s purposes

• Effective date: the date when the scheme becomes legally effective after filings and approvals
  

In Sterlite’s case, the scheme had an appointed date of January 1, 2023, but it became legally effective later after the NCLT order was filed with the ROC.

What changed after the demerger 

After the demerger took effect, the structure became:

1) Sterlite Grid 5 Limited (SGL5) – the resulting company

Sterlite’s Infrastructure (BOT) business, including the transmission development arm, was demerged into Sterlite Grid 5 Limited (SGL5). The company also refers to SGL5 as Resonia in its communication.

2) Sterlite Electric Limited (SEL) – the continuing company

The remaining business continued in the original company (earlier Sterlite Power Transmission Limited), with a focus on:

• Global Products & Solutions (manufacturing of conductors/cables etc.)

• Specialised EPC

• Convergence infrastructure/services
  

So the split is essentially:

• Infrastructure platform → SGL5

• Products + EPC + convergence → SEL
  

Key timeline

Here are the core dates that define the restructuring:

• Board approval of the scheme: September 28, 2023

• NCLT sanction: September 5, 2024

• Effective date (ROC filing): October 8, 2024

• Record date: October 30, 2024

• Allotment of SGL5 shares: November 22, 2024
  

Share entitlement 

The share entitlement was straightforward:

1 (One) new share of SGL5 for every 1 (One) fully paid-up equity share held in the demerged company (Sterlite).

Example:

If someone held 100 shares of Sterlite (the demerged company) on the record date, they were allotted 100 new shares of SGL5.

The name change which added confusion

Separately from the demerger mechanics, the company also approved and executed a name change:

Sterlite Power Transmission Limited → Sterlite Electric Limited

The annual report notes that the Registrar of Companies approved the name change and it took effect based on the fresh certificate of incorporation.
This is why older references will still say “Sterlite Power”, while newer filings and annual reports prominently say “Sterlite Electric”.

Why you may see “Resonia” used in different ways

In the company’s communication, you may see the Infrastructure platform being referred to as Resonia, and you may also come across “Resonia Limited” in group entity lists.

The important takeaway for understanding the demerger is:

• The infrastructure business was demerged into SGL5 (the resulting company).

• “Resonia” is used as a naming/branding reference around that infrastructure setup in company material.

Conclusion

Sterlite Power’s demerger made three core changes. First, the transmission infrastructure business was carved out into Sterlite Grid 5 Limited. Second, the original company continued as the remaining business and was renamed Sterlite Electric Limited. Third, shareholders received 1 share of Sterlite Grid 5 for every 1 share held under the scheme. In one line: Sterlite separated its transmission infrastructure into a new company, while the remaining business continued under a new name.

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