Sterlite Technologies Bags Rs 2,631-Crore Contract From BSNL

Sterlite Technologies Ltd. entered into an agreement with Bharat Sanchar Nigam Ltd. for design, construction, supply and maintenance of the middle-mile network under BharatNet, according to an exchange filing on Wednesday.

Sterlite Tech, through its global services business, in consortium with Dilip Buildcon Ltd., entered into the agreement with BSNL for a deal value of Rs 2,631 crore.

The project entails design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under BharatNet for the Jammu and Kashmir, and Ladakh Telecom Circles.

It is expected to take place over a period of three years for construction, while the maintenance is for 10 years. It will be at 5.5% per annum of capex for the first five years, and then 6.5% per annum of capex for the next five years of maintenance, according to the filing.

Shares of Sterlite Tech closed 1.91% higher at Rs 76.97 apiece on the NSE, compared to a 1.1% fall in the benchmark Nifty. The stock has fallen 21.15% in the last 12 months and 9.41% on a year-to-date basis.

Two out of the three analysts tracking the company have a 'buy' rating on the stock and one recommends 'hold', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 20.2%.