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Industry projections for Sterlite Power Transmission Limited suggest an upside in the range of ₹760-820 by 2025. Key drivers include robust infrastructure development projects, government capital expenditure in power transmission, and modernization initiatives that improve efficiency and margins.
Sterlite Power Transmission Limited (SPTL) initially filed for an IPO to raise ₹1,250 crore but withdrew the application in September 2022 due to unfavorable market conditions. The company is exploring alternative funding options, including private capital infusion and a potential demerger of its infrastructure business. In September 2023, SPTL demerged its infrastructure business into Sterlite Grid 5 Limited (SGL5) and formed a joint venture with Singapore's GIC. Additionally, the company is considering launching Infrastructure Investment Trusts (InvITs) to unlock value from its assets. SPTL's Brazilian subsidiary also issued Green Debentures worth ₹600 crore. The company’s focus remains on enhancing transmission infrastructure, capitalizing on renewable energy needs, and expanding its order book, which saw a 35% YoY increase in FY24.
Sterlite Power Transmission is considered a defensive infrastructure stock with growth potential. Its diversified revenue from long-term power transmission contracts makes it appealing to both defensive investors and those seeking steady growth through strategic expansions in a capital-intensive sector.
Mr. Dinesh Agarwal: Promoter with extensive experience in the power and infrastructure sectors, focused on driving strategic growth. Ms. Ritu Sharma: Chief Operating Officer with a proven track record in managing large-scale transmission projects and operational efficiency.
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