Sterlite Technologies Ltd shares are in focus on Thursday after the integrator of digital networks said its allotment committee approved the kick start of qualified institutional placement (QIP), setting a floor price of  Rs 613.69 apiece, which was at a 5.25 per cent premium over the prevailing price of Rs 583.60 per share.
 
The issue price will be determined by Sterlite Tech in consultation with the book running lead managers appointed for the issue. The company may offer a discount of not more than 5 per cent on the floor price, so calculated for the issue. A 5 per cent discount to floor price gives an issue price of no less than Rs 583.01 per share, nearly the same as Wednesday's closing price.

To recall, the company board had on April 29 approved  raising of funds, inter alia, by issue of equity shares or any other equity linked instruments or securities including convertible securities or non-convertible securities or combination of such securities through inter alia, a private placement for an aggregate consideration of up to Rs 2,000 crore, subject to the approval of the shareholders. 

"There are certain capex plans which we are having. We do expect that in near-term we will focus on our technology leadership and upgrading our asset base to support high-value data center portfolio offerings, which can have an approximate investment of Rs 500 crore," a company spokesperson said in a recent earnings call. 

Sterlite Tech has increased its capex plans to around Rs 600-700 crore for FY27 mainly for efficiency improvements along with high-value data center portfolio offerings. To support increasing capex along with working capital requirement, the promoters infused share warrants of Rs 125 crore in February 2026, with remaining amount out of overall commitment of Rs 498.30 crore to be infused later. 

"While the debt protection metrics are likely to improve gradually from fiscal 2027 onwards given the improvement in operating performance, any major debt funded capex and its impact on the financial risk profile would remain key monitorable, further no support is extended to group entities apart from the subsidiaries

In the June quarter, Sterlite Tech reported revenue of Rs 1,441 crore and operating Ebitda of Rs 218 crore. As per Crisil, the management expects strong recovery seen in Q4 to sustain given significant order additions and strong realisations. 

Additionally, the proportion of sales to the US has been increasing, driven by revival in demand. US market typically offers higher profitability owing to higher realisation and higher sales of value-added products. 

Further Sterlite Tech is focusing on improving contribution from data centre related fibre cables where company, during May 2026, received $1.1 billion order to be executed over 3 years. Overall, the capacity utilization is expected to improve leading to better absorption of fixed costs and improved profitability further, Crisil said on June 16.

However, profitability in 2HFY26 continues to remain impacted because of US tariffs. While the tariff impact was expected to come down from Q1FY27 onwards post reduced tariff to 10% in February 2026, however impact of recent additional tariff announcements of 12.5% on India, if imposed, would remain a key monitorable. Further margins are also likely to be impacted on account of cost pressures from geopolitical disruption driven by West Asia conflict, particularly impacting input prices. With all these headwinds, the margins improvements on account of improved realisations along with newer segments would remain a key monitorable