Sterlite Power Transmission Ltd. on Thursday said it has received shareholders' nod to demerge its transmission business. The demerged transmission infrastructure is to be housed under Sterlite Grid 5 Ltd., and the global products and specialised EPC services will continue to remain under SPTL to pursue independent growth strategies.
"Sterlite Power receives stakeholders' approval for demerger of transmission business from SPTL. The vote on the demerger proposal received 100% approval from secured creditors, 99.26% approval from unsecured creditors, 99.99% from equity shareholders present and voting, and 100% by the non-fund-based lenders," the company said.
The simplified structure will allow each entity to attract capital pool tailored to its requirements. The transmission business can target long-term, patient investors seeking predictable cash flow, while SPTL, focusing on Global Products & Services business, can attract capital seeking higher returns typically suited for pre-IPO or capital market investors.
“This support from our stakeholders validates the strategic rationale behind the demerger. It is a significant milestone in our journey to create two future-ready businesses with distinct growth trajectories," Pratik Agarwal, managing director, SPTL said.
SPTL is a leading private sector power transmission infrastructure developer and GPS provider.
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