Sterlite Technologies share price rises over 11% after promoter removes pledge on firm's share
BusinessToday.In June 11, 2019
Sterlite Technologies share price rose in trade today after promoters removed 100% of the pledge on the firm's shares with immediate effect. Sterlite Technologies share price rose up to 11.53% to Rs 193 level compared to the previous close of Rs 173.05 on BSE. Sterlite Technologies share price opened with a gain of 9.51% at Rs 189.50 on BSE.
Sterlite Technologies share price has been gaining for the last two days and has risen 10.45% in the period. Twin Star Overseas Limited, promoters of the company, removed entire pledge on shares of Sterlite Technologies Limited with immediate effect, the firm said.
On May 7, Twin Star Overseas had inked an agreement with their lenders to remove pledge of the firm's shares. The stock has price to earnings ratio (PE) of 12.38, above sector average of 11.52.
Sterlite Technologies share price has fallen 35.73% during the last one year and fallen 34.90% since the beginning of this year.
8 of 9 brokerages rate the stock "buy" or 'outperform' and one "hold", according to analysts' recommendations tracked by Reuters.
Share price of optical fibre maker was trading above the 50-day moving average of 179.50 but below the 200-day moving average of 239.73 on BSE.
Anil Agarwal, the Group Chairman said, "We are extremely excited about STL's strategic push towards the future of global data networks. Our recent new technology solutions for data networks are very encouraging and have the potential to fundamentally disrupt the space. As the founders and lead investors of STL, we remain bullish about our business' ability to create disproportionate long term shareholder value. As communicated, we have removed the entire pledge on STL, and remain committed to the highest level of corporate governance and our shareholding in the company."
Edited by Aseem Thapliyal