Sterlite power gets green light for demerger, to split into two entities

Sterlite Power Secures Near-Unanimous Approval for Demerger, Creating Two Strategic Entities.

Expert Analysis:

• Sterlite Power Transmission Limited (SPTL) secured unanimous stakeholder approval for the demerger of its transmission business.

  • 100% approval from secured creditors and non-fund-based lenders.

  • 99.26% approval from unsecured creditors.

  • 99.99% approval from equity shareholders.

• Demerger will result in two distinct entities:

  • Sterlite Grid 5 Limited for Transmission Infrastructure.

  • SPTL for Global Products & Specialized EPC Services.

• Restructuring aims:

  • Enable targeted growth strategies.

  • Attract tailored capital investments.

• GPS business:

  • Targets higher-return, pre-IPO capital.

  • Secured orders worth INR 7,000 crores in FY24, a 35% year-on-year increase.

• Pratik Agarwal's Endorsement: Pratik Agarwal, Managing Director of SPTL, supports the strategic rationale behind the demerger.