Sterlite Technologies surges 12% as promoter releases entire pledged shares

Shares of Sterlite Technologies surged 12 per cent to Rs 193 in intraday trade on the BSE on Tuesday on the back of heavy volumes after promoter Twin Star Overseas removed entire pledge on the company's shares.

“The company received communication dated June 10, 2016 from Twin Star Overseas Limited, promoters of the company, regarding removal of entire pledge on shares of Sterlite Technologies,” the company said in a regulatory filing.

The promoters have informed that they have removed 100 per cent of the pledge on Sterlite Technologies shares with immediate effect.

The management said that it was extremely excited about Sterlite Technologies’ strategic push towards the future of global data networks. The company’s recent new technology solutions for data networks are very encouraging and have the potential to fundamentally disrupt the space, it said.

“As the founders and lead investors of Sterlite Technologies, we remain bullish about our business' ability to create disproportionate long term shareholder value,” said Anil Agarwal, the Group Chairman.

Thus far in the calendar year 2019, the stock of the telecom services provider has underperformed the market by falling 42 per cent, as compared to a 10 per cent rally in the S&P BSE Sensex till Monday. It touched a 52-week high of Rs 399 on November 1, 2018.

With today’s gain, the stock has rallied 34 per cent from its 52-week low level of Rs 144 hit on May 24, 2019, in intra-day trade.

At 10:52 am, Sterlite Technologies was up 10 per cent at Rs 190 on the BSE, against a 0.14 per cent rise in the benchmark index. The trading volumes on the counter more than doubled with a combined 7.61 million shares changed hands on the NSE and BSE so far.

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