Sterlite Technologies Limited Investor Presentation May 2015 - - PowerPoint PPT Presentation

sterlite technologies limited
SMART_READER_LITE
LIVE PREVIEW

Sterlite Technologies Limited Investor Presentation May 2015 - - PowerPoint PPT Presentation

Sterlite Technologies Limited Investor Presentation May 2015 www.sterlitetechnologies.com 2 www.sterlitetechnologies.com Disclaimer Certain words and statements in this communication concerning Sterlite Technologies Limited (the Company)


slide-1
SLIDE 1

www.sterlitetechnologies.com

Sterlite Technologies Limited

Investor Presentation May 2015

slide-2
SLIDE 2

www.sterlitetechnologies.com

Disclaimer

Certain words and statements in this communication concerning Sterlite Technologies Limited (“the Company”) and its prospects, and other statements relating to the Company’s expected financial position, business strategy, the future development of the Company’s operations and the general economy in India & global markets, are forward looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, changes in government policies or regulations of India and, in particular, changes relating to the administration of the Company’s industry, and changes in general economic, business and credit conditions in India. The information contained in this presentation is only current as of its date and has not been independently verified. No express or implied representation or warranty is made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. None of the Company or any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss howsoever arising from any information presented or contained in this presentation. Please note that the past performance of the Company is not, and should not be considered as, indicative of future results. Furthermore, no person is authorized to give any information or make any representation which is not contained in, or is inconsistent with, this presentation. Any such extraneous or inconsistent information or representation, if given or made, should not be relied upon as having been authorized by or on behalf of the Company. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such revision or changes. These materials are confidential, are being given solely for your information and for your use, and may not be copied, reproduced or redistributed to any

  • ther person in any manner. The distribution of this presentation in certain jurisdictions may be restricted by law. Accordingly, any persons in possession
  • f this presentation should inform themselves about and observe any such restrictions

2

slide-3
SLIDE 3

www.sterlitetechnologies.com

Company overview

slide-4
SLIDE 4

www.sterlitetechnologies.com

Sterlite Technologies: One of the leading global providers of solutions in telecom and power transmission

4

FY15 Net Revenues* Of the global top 10 telecos Use Sterlite’s innovative solutions Vedanta Group* Shares the same lineage as the FY15 Consolidated EBITDA* Consolidated revenues are from international markets* Business Lines Operates in 2 Sectors Telecom & Power Full time Employee Patents in USA, EU, India, China & 53 more under consideration Locations India, China & Brazil Global sales presence with manufacturing locations in

* As of FY15 consolidated numbers

slide-5
SLIDE 5

www.sterlitetechnologies.com

Key Markets Major competitors Key FY15 Financials (Rs. mn)* Offering

  • Optical fibers & preform
  • Fiber optic cables
  • Data Cables
  • System integration and

FTTH solutions

  • Power conductors
  • HV/EHV cables
  • OPGW
  • T&D engineering solution
  • 6 projects across 11 states

won through competitive bidding on BOOM basis

  • 5000 km circuit

transmission lines and 3 substations

  • Europe, China and Middle

East

  • America, Middle East, Africa

and Asia

  • India
  • Corning (US) and Prysmian

(Italy)

  • Apar Industries (India) and

Midal (Middle East)

  • Power Grid (India) and L&T

(India)

  • Revenue: 15,764
  • EBITDA: 3,452
  • Revenue: 14,730
  • EBITDA: 352
  • Revenue: 1,539
  • EBITDA: 1,320

Telecom Power Products and Transmission Grid

* Consolidated financials before inter-segment eliminations

Our business verticals

5

Proposed to be demerged

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-6
SLIDE 6

www.sterlitetechnologies.com

Telecom

  • Optical Fiber (Capacity: 20 mn fkm)–

Aurangabad(India) and Haimen, Jiangsu Province (China)

  • Optical Fiber Cable (Capacity: 8 mn fkm

being increased to 15m fkm)– Silvassa (India) and Curitiba (Brazil) Capacity being increased to 15mn fkm

  • Structured data cables – Silvassa (India)

Power Products

  • Conductors (Capacity: 1,60,000

tonnes) Silvassa (India) and Jharsuguda (India)

  • HV and EHV Cables Hairdwar (India)

Manufacturing Locations

  • China - 75%:25% with Tongguang for

drawing optic fiber

  • Brazil - 50:50 JV with Conduspar for

fiber cabling

Joint Ventures

Sales Manufacturing Market presence

Global presence ensures proximity to our clients

6

  • China, India, Netherlands, Russia,

South Africa, Turkey, UAE, UK

Sales Offices Services and Solutions

Telecom

  • NFS Project execution in J&K

Power

  • 6 Grid projects across 11 states in India

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-7
SLIDE 7

www.sterlitetechnologies.com

Evolution from products to an engineering company

7

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

  • Incorporated

Copper telecom cables Facility

1993

  • Fiber optic cables

facility setup

  • Optical fiber

facility set-up at Aurangabad

2000

  • Demerger from

Sterlite Industries

  • Acquisition of power

conductors business

  • Commencement of

Grid business

2010

  • JV with TG for fiber

facility in China

  • Set-up of EHV power

cables facility at Haridwar

  • JV with Conduspar in

Brazil for fiber cable

  • Commissioned

India’s first UMTP (in record 26 months)

2013

  • Secured prestigious NFS

project to implement end to end OF Network for Defense services

  • Added sixth UMTP project

1988 1995 2006 2012 2014

Erstwhile Sterlite Industries Sterlite Optical Technologies renamed to Sterlite Technologies

2015

  • Demerger

Announced

slide-8
SLIDE 8

www.sterlitetechnologies.com

STL offers a unique proposition

8

Unique opportunity to participate in the growth of the telecom and power sector in India as well as globally Underlying industry dynamics are very attractive – telecom led by the exponential growth in data consumption and power led by increase in per capita power consumption Sterlite Technologies operates on a global scale – 20m fkm fully integrated optical fiber plant in India and 160,000MT for power conductors – capacities are well invested Full control over the value chain by way of backward integration allowing for significant cost advantage Sterlite Technologies offers complete end to end solutions for high speed data transmission and high voltage power transmission Strategic JV and tie ups with reputed partners globally led by a strong management team

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-9
SLIDE 9

www.sterlitetechnologies.com

Telecom Business

slide-10
SLIDE 10

www.sterlitetechnologies.com

Products

  • Optical fibers & preform
  • Fiber optic cables
  • Structured data cables
  • Dedicated Center of

Excellence

  • Low loss to bend Insensitive

Fibres

  • For Long-Haul to Last Mile

communication applications Solutions

  • System and network

integration

  • End-to-end project

management

  • Technology platform

deployment MPLS, GPON, DWDM, etc.

  • Core, metro and access

network

  • Network engineering,

Roll out, Integration and O&M Key metrics (FY 15)

  • Fiber volumes 17.7m fKm
  • OF Cable volume 7.7m fKm
  • Consolidated revenue of Rs.

15,764 mn

  • EBITDA of Rs. 3,452 mn

Key Customers

  • Global Telecom Service
  • Internet Service Providers
  • MSO/CATV Operators
  • Govt. of India agencies

Our telecom business

10 Infrastructure

  • Specialized team with

FTTH experience

  • Build, Install, Own and

Manage

  • Neutral access network
  • Over 180,000 homes

connected across 8 major cities Full control over the entire value chain Raw materials

  • Silica & Power
  • Certain natural

gases Preform

  • Integrated

Core rod + cladding Optic fiber

  • 16m fkm

drawing India and 4m fkm in China OF cable

  • Portfolio

catering to diverse end use Solutions

  • High speed

broadband networks

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-11
SLIDE 11

www.sterlitetechnologies.com Source : Industry Estimates

Various economies at different stages of fiber deployment should help sustain global growth

Data consumption continues to grow fiber demand

11 Mobile data to grow 44% CAGR vs 15% for fixed internet

62 75 95 118 140 173 189 218 245 263 297 50 100 150 200 250 300 350 400 450 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Million Fiber Km China India North America Europe Others World Total 62 76 91 110 132 50 100 150 200 250 300 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 '000 Petabyte/month Fixed Internet Managed IP Mobile Data 844 380 327 83 71 54 100 200 300 400 500 600 700 800 900 China United States Europe India Latin America Africa

India as a market is under fiberized – optical fiber cable deployment in India in 1/10th the cable deployed in China

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-12
SLIDE 12

www.sterlitetechnologies.com

Long term sustainable demand going forward

Leveraging the growth in India – Products to Solutions

12

Current project highlights

National Optic Fibre Network (NOFN)

  • Secured largest share within the country for

cable supply Network for Spectrum (NFS)

  • Turnkey deployment of network in J&K worth
  • Rs. 16,500 mn and supply of cable worth
  • Rs. 3,000 mn to other participants

Private Telco rollout

  • Ongoing supply of OFC to RelianceJio, Bharti

Airtel and other Indian operators

Infrastructure Solutions Products Opportunities To become an End-to-End Service Provider

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-13
SLIDE 13

www.sterlitetechnologies.com Source : Company

Volumes (m fiber km) Order Book (Rs Mn)

2,000 3,450 21,876 24,000 23,000 21,000

  • 5,000

10,000 15,000 20,000 25,000 30,000 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Order book in Rs Mn

Resulting in improved volumes & order book

13

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-14
SLIDE 14

www.sterlitetechnologies.com

Power Business

slide-15
SLIDE 15

www.sterlitetechnologies.com

Our power business

15 Products

  • Full range conductors from

ACSR to high performance conductors

  • HV and EHV cables from

voltage grade of 6.6 kV to 220 kV

  • Optical Ground Wire

(OPGW) that leverage core expertise in power conductors & fiber optic cables Solutions

  • Engineering T&D

networks & re- conductoring solutions

  • Enhancing current

carrying capacity

  • End-to-end project

management

  • Engineering,

Integration, Roll out and O&M Key metrics (FY 15)

  • Capacity : 160,000 MT
  • Volume of conductor sold :

77,996 MT

  • Consolidated revenue of Rs.

16,268 mn

  • EBITDA of Rs. 1671 mn

Key Customers

  • Central and Private sector

power utilities

  • State Electricity Boards
  • EPC contractors

Infrastructure

  • Largest private sector

independent power transmission company in India

  • 6 Projects in Portfolio
  • $1.3 bn capital

commitment

  • 5000 Km transmission

lines & 3 substations across 11 states Full control over the entire value chain Raw materials Products Engineering Power Grids

  • Aluminium
  • Other alloys
  • HV and EHV

product line

  • Heli stringing and

live line reconductoring

  • Inter State

Transmission networks

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-16
SLIDE 16

www.sterlitetechnologies.com

765 KV D/C 765 KV S/C 400 KV D/C 2x1500 mVA, 765/400 kV Substation

Dhule Vadodara Aurangabad Indore Bina Bhopal Jabalpur Bihar Sharif Purnia Siliguri Bongaigaon Dharamjaygarh Kota Shujalpur Purlia Ranchi Kharagpur Chaibasa

5 4 2 1 3 6

400/220 kV Substation

Jalandhar Amargarh

Note: Map is representative of project locations and transmission lines not to scale

Connecting key generating centers with load centers

  • Build-Own-Operate-Maintain (BOOM) Model with 6

Projects in Portfolio

  • 5000 Km circuit transmission lines & 3 substations

across 11 states

  • Estimated capital expenditure of Rs 80,000 mn
  • One project fully commissioned, all 6 to be

commissioned by FY20

  • One of the lowest risk profiles as compared to other

segments within the Infrastructure segment

  • Fixed annuity model (35 years) with high quality of

receivables that is not dependent on power flow

  • Perpetual assets with minimum maintenance capex
  • Assets have opportunity for additional revenue

generation

  • SCPE has entered into agreements for a Rs. 5 bn equity

investment - the first foreign investment into India’s power transmission sector

16

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-17
SLIDE 17

www.sterlitetechnologies.com

Project name States covered Other details Line length (kms) Expected

  • peration by
  • Approx. Level

Tariff (Rs Mn)^ East North Interconnect Assam, Bihar & West Bengal 2 * 400 kV double circuit 450 Commissioned 1,180 Jabalpur transmission Chhattisgarh, Madhya Pradesh 1 * 765 kV single circuit 1 * 765 kV double circuit 610 Jun-15 1,400 Bhopal – Dhule Madhya Pradesh, Maharashtra & Gujarat 4 * 765 kV single circuit 2 * 400 kV double circuit 2 sub stations 990 June-15 2,000 Rajasthan Atomic Power Rajasthan & Madhya Pradesh 1 * 400 kV double circuit 200 Mar-16 400 Purulia & Kharagpur West Bengal &Jharkhand 2 * 400 kV double circuit 270 Mar-16 600 NRSS 29 Punjab & Jammu & Kashmir 3 * 400 kV double circuit 1 substation 440 Jul-18 4,400

6 5 4 3 2 1

^ Levelised tariff for 25 years for East North Interconnect project; 35 years for all other projects

Business Model Pre-bid steps Execution Post COD

  • Detailed route planning
  • leverage in house engineering

capabilities

  • Network planning and detailed

cost estimates

  • Strong project management
  • Use global vendors and

international best practices

  • Monetization and asset rotation
  • Financial engineering

Infrastructure project details

17

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-18
SLIDE 18

www.sterlitetechnologies.com

Order book for power segment (in Rs. Mn)

The India opportunity leading to a strong and diversified

  • rder book

18

3,390 2,890 2,624 2,567 3,088 3,101 7,547 6,450 7,018 12,169 11,219 12,216 13,063 12,420 12,519 10,579 9,853 10,505 24,000 21,760 22,161 25,314 24,159 25,823 5,000 10,000 15,000 20,000 25,000 30,000 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 PGCIL Others Exports Total

Conducive macro environment

  • Opportunity being driven by growth in generation

capacity and increased residential demand

  • Policy changes transforming the Indian power sector

– more private sector participation opportunities

  • Growth in renewable energy will increase demand for

T&D evacuation capacity

  • A number of projects to be commissioned across

strengthening and capacity augmentation projects

  • TBCB model for power transmission projects well

accepted and should become more widespread even at state level

  • Improving financial profile of participants in the

sector

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-19
SLIDE 19

www.sterlitetechnologies.com

Demerger Update

slide-20
SLIDE 20

www.sterlitetechnologies.com

Restructuring to create focused pure play opportunities

20 Promoters

STL Telecom division Power Products division Grid Projects subsidiary

Public shareholders

45.2% 54.8%

Standard Chartered PE

Demerger of power products division and transmission grid business undertaking

Sterlite Power Transmission Ltd

100%

Current Structure Post Restructuring

Promoters

STL Telecom Business

Public shareholders

45.2% 54.8%

Promoters

Sterlite Power Transmission Ltd. (SPTL) Power Products Business Grid Projects subsidiary

Public shareholders

Standard Chartered PE

27.1% fully diluted 27.1% fully diluted

STL* Revenue : 1,619 EBITDA: 345 Net Debt: 674 SPTL* Revenue : 1,478 EBITDA: 167 Net Debt: 4,207

Note : * In Rs Cr . Based on FY 15 consolidated basis , numbers are representative and have not been audited

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-21
SLIDE 21

www.sterlitetechnologies.com

Options for shareholders

21 5 shares Option A

5 shares in STL STL Telecom (Listed)

Value of share Rs 112.30 (based on 5:1 ratio) implying per share value of STL at Rs22.46

SPTL (Unlisted equity)

1 RPS to be redeemed at the end of 18 months for Rs 125.80 with dividend

SPTL Listed RPS

Option B

SPTL Listed RPS

Option C 1 RPS to be redeemed within30 days

  • f Effective Date for Rs 112.30

Scheme offers multiple options to cater to investor’s preference

  • Option A : Continue to hold equity shares and partner in the value creation
  • f the power sector

In case shareholder is unable to hold shares due to conflict with their investment mandate then will be issued Redeemable Preference Shares (RPS)

  • Option B : Provides a liquidity event at the end of 18 months
  • Option C : Provides an initial liquidity window for 30 days

Note : * Representative for resident shareholders options for other shareholders and Promoters may be different and is covered in the scheme document

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-22
SLIDE 22

www.sterlitetechnologies.com

Financials

slide-23
SLIDE 23

www.sterlitetechnologies.com Net Revenue EBITDA & EBITDA Margin Net Debt*

* Gross Debt – Cash – Inv Cumulative contribution by STL in Transmission Projects

  • Rs. Mn
  • Rs. Mn
  • Rs. Mn
  • Rs. Mn

Our consolidated financials

23

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-24
SLIDE 24

www.sterlitetechnologies.com

Proforma financials

24

Standalone Consolidated Tel Power Tel Power Revenue 1,530 1,500 Revenue 1,619 1,478 EBIDTA 345 41 EBIDTA 345 167 EBITDA margin 23% 3% EBITDA margin 21% 11% Depreciation 76 32 Depreciation 96 89 Interest 53 126 Interest 75 252 Cash Profit 292 (85) Cash Profit 270 (84) Tax 54 (40) Tax 55 (52) PAT 161 (77) PAT 118 (121) EPS 4.09 (1.95) EPS 2.99 (3.08) Net Worth 668 575 Net Worth 600 469 Borrowing 502 875 Borrowing 674 4,207 Total 1,170 1,450 Minority Investment in Grid Business 450 Investment in Grid Business

  • 1,197

Total 1,275 5,126 Fixed Assets 705 242 Fixed Assets 984 5,264 Net Fund Involvement 465 11 Net Fund Involvement 290 (138) FY 2014-15 (Carve out) FY 2014-15 (Carve out) Balance Sheet as on Mar 31, 2015 Balance Sheet as on Mar 31, 2015

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-25
SLIDE 25

www.sterlitetechnologies.com

Way Forward

slide-26
SLIDE 26

www.sterlitetechnologies.com

Business strategy and way forward

26

Demerger to create a winning outcome for all – two pure play focused companies with flexibility to pursue growth independently

  • Maintain strong presence in the Indian market
  • Deeper penetration in export markets
  • Focus on increasing sales of high performance conductors
  • Providing more value added turnkey solution opportunities
  • Take advantage of the India opportunity – Products + Services
  • Leverage our manufacturing capabilities and increase utilisation
  • Continue to increase share of cabling in overall mix (38% in FY14 and

44% in FY15)

  • Increase penetration in global accounts

Telecom Products and Solutions Power Products and Solutions

  • Focus on execution of existing projects
  • Selectively monetize and refinance assets post CoD
  • Strategically continue to bid for transmission projects in India

Power Transmission Grid

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-27
SLIDE 27

www.sterlitetechnologies.com

Appendix

slide-28
SLIDE 28

www.sterlitetechnologies.com Anupam Jindal, CFO (18 years experience)

  • Joined the Sterlite Group in 1998 and is

Chartered Accountant from the ICAI

  • His key focus areas have been Finance,

Treasury, Accounts and MIS.

  • K. S. Rao, COO – Telecom & Power

Conductors (21 years exp)

  • Joined Sterlite in 1993 and holds a

Bachelor’s degree in Mechanical Engineering

  • His key focus areas have been

engineering, mfgr, product and business development Ajay Bhardwaj, COO – Grid Business (30 years experience)

  • Joined Sterlite in 2011
  • Worked in senior capacities in various
  • rganisations ion projects in T&D,

Energy Management Systems.

  • An electrical Engineer from IIT-Roorkee
  • Dr. Anand Agarwal, CEO

(19 years experience)

  • Joined Sterlite in 1995 and B. Tech. in

Metallurgical Engineering from IIT- Kanpur, Masters and Ph.D. from the Rensselaer Polytechnic Institute, USA Pravin Agarwal, Whole time Director (30+ years experience)

  • Closely involved with the Sterlite

Group’s operations in India since its inception

  • Has rich experience in general

management and commercial matters Rajendra Mishra, COO - Power Cables (24 years experience)

  • Joined Sterlite in 2008 and holds a

Bachelor’s degree in Electrical and Electronics Engineering from REC, Suratkal Pratik Agarwal Head-Infrastructure Business (10+ years experience)

  • He leads strategic business initiatives in

the infrastructure ownership space

  • Completed his B.Eco from Wharton,

Pennsylvania and MBA from London Business School Ankit Agarwal Global Head - Telecom Products (7+ years experience)

  • Also responsible for identifying and

executing strategic opportunities globally for Sterlite

  • Holds a Bachelor’s degree from Univ. of

Southern California and MBA from London Business School. Pankaj Priyadarshi, CCO – SCM (28 years of experience

  • Joined Sterlite in 2012 and has completed

Mechanical Engineering from BITS Pilani and a course on Strategic Sourcing Management from IIM-Ahmedabad.

Professional Management Team

28

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-29
SLIDE 29

www.sterlitetechnologies.com

Scheme highlights

29

  • April 01, 2015

Appointed Date

  • For every 5 equity shares held in STL, retain 5 shares of STL + option to receive either:

– One equity share of face value Rs 2/- in SPTL; or – One Redeemable Preference Shares (RPS) of face value of Rs 2/- each in SPTL with a dividend of 8% of Face value per annum. The RPS can be redeemed for cash of Rs 125.80 per RPS with dividend after 18 months from allotment, alternative window to sell within 30 days of allotment to promoter or any

  • ther entity appointed by promoter’s for Rs 112.30

Share Entitlement Ratio

  • The demerger would be compliant with section 2(19AA) of the Income Tax Act
  • Equity shares of Sterlite Power Transmission Ltd. is proposed to be kept unlisted
  • RPS of Sterlite Power Transmission Ltd. are proposed to be listed
  • Exit Options, as per Scheme will be made available to public shareholders

Other Key Details

  • Expected to complete by Q4-FY16
  • Shareholders, Creditors, SEBI and Stock Exchanges, Bombay High Court, RBI and other applicable

regulatory authorities, if any Timelines & Approvals

  • SPTL valued at Rs 885crore which is at the higher end of range 804crs to 885cr
  • Implied value of demerged undertaking Rs 22.46 per share
  • Valuation based on the independent valuers report issued by Price Waterhouse & Co. LLP and Haribhakti

& Co Valuation

Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business

slide-30
SLIDE 30

www.sterlitetechnologies.com

Options for public shareholders

30

  • Options:

– Receive equity shares of SPTL , or – Receive Redeemable Preference Shares (RPS) of SPTL and seek cash exit from redemption of RPS after 18 months, or – Sell RPS of SPTL to promoters and / or their affiliates within 30 days of allotment

  • Note:

– Where no option is exercised by a shareholder, the resulting company will issue and allot equity shares as per the entitlement of such shareholder

Resident shareholders of STL

  • Receive equity shares of SPTL and sell shares of SPTL to promoters and / or

their affiliates

Non-Resident shareholders of STL# (excluding FPIs and GDR holders)

  • Options:

– GDR holders acting through their depository shall compulsorily sell to promoters and / or their affiliates the equity shares of SPTL that they are entitled to receive – The merchant banker appointed by SPTL shall sell the equity shares and distribute cash thereof to the GDR holders, net of withholding tax

GDR holders

Note: #If RBI approval is not received before the Effective Date, FPIs acting through a merchant banker appointed by SPTL will receive equity shares of SPTL. The merchant banker shall sell the equity shares and distribute cash thereof to the FPIs, net of withholding tax. Where no option is exercised by a shareholder, the resulting company will issue and allot equity shares as per the entitlement of such shareholder and such equity shares will be sold and cash proceeds will be distributed thereof, net of withholding tax

Foreign Portfolio Investors (FPI)*

  • Options:

If RBI approval received – Receive unlisted equity shares of SPTL which shall be compulsorily sold to the promoters and / or their affiliates , or – Receive listed RPS of SPTL and seek cash exit from redemption of RPS after 18 months, or – Sell RPS of SPTL to promoters and / or their affiliates within 30 days of allotment If RBI approval not received – FPIs acting through a merchant banker appointed under the Scheme will receive equity shares of SPTL. The merchant banker shall sell the equity shares and distribute cash thereof to the FPIs, net of withholding tax Company Overview Way Forward Financials Demerger Update Appendix Telecom Business Power Business