Sterlite Tech issues clarification on price rise

Business

oi-Shoaib MD

By Shoaib Md

Published: Tuesday, March 29, 2011, 15:51 [IST]

Sterlite Technologies gave clarification to the Bombay Stock Exchange that the company is not responsible for the sudden increase in price and volumes. The company came out with this clarification as it gained 17% in three trading sessions.

The company, Sterlite Technologies stated, "Also we confirm that the Company is not in possession of any other information / announcement which may have bearing the price / volume behavior of the script."

SP Tulsian, an investment advisor said on a leading media that the the company was undervalued and hence it was not surprising that its stock raised suddenly. He said a second comparable stock with this company is Apar industries. Apar industries has also gained in the last 15 days.

Sterlite Technologies is engaged in the manufacturer of power transmission and telecom products in India. Telecom business includes integrated optical fiber, telecom cables. Company is the biggest player in the Indian telecom cable industry.

Earlier the company was an Optical Fiber and Telecom Cable manufacturing entity of the Sterlite Group, that has interests in Copper, Aluminum, Mining and Telecom across four continents: North America, Europe, Asia to Australia. Sterlite Technologies came in presence by the de-merger of the telecom division of Sterlite Industries on July 1, 2000.

Sterlite Technologies is the biggest player in the Indian telecom cable industry and has a dominant position. It also derives a significant portion of revenues from export markets. In the domestic market, the demand originates from public sector companies like BSNL, Mahanagar Telephone Nigam (MTNL), Power Grid Corporation of India, Railways and Gas Authority of India.

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