STL wins big! unanimous support paves way for strategic business shift

STL [NSE: STLTECH], a premier provider of optical and digital solutions, has marked a significant milestone in the demerger of its Global Services Business (GSB). The company announced that it has received unanimous approval from its shareholders and both secured and unsecured creditors. This approval facilitates the upcoming listing of shares for the newly established business entity.

During the meetings convened by the National Company Law Tribunal (NCLT) on July 10, 2024, the proposal for demerger received 100% approval from secured and unsecured creditors and 99.98% from equity shareholders. This resounding support reflects the confidence in STL’s potential for growth and value creation. Ankit Agarwal, Managing Director of STL, expressed gratitude towards the stakeholders, stating, “Achieving these approvals is a pivotal milestone that showcases the strong belief in our strategic vision and growth potential.”

STL’s Global Services Business has been instrumental in India’s digital infrastructure expansion, particularly in the deployment of over 135,000 km of Optical Fibre network across 23 states. This initiative has positioned STL as a critical player in India’s digital growth story, emphasizing nation-building and innovation. The business has also made significant inroads in the UK, enhancing its global footprint.

The demerger is set to allow both STL and the new Global Services entity to operate more independently, focusing on their specific markets with greater agility. This strategic realignment is expected to enhance operational efficiencies, competitiveness, and value for investors and strategic partners particularly interested in the Global Services Business. Agarwal added, “This demerger will lead to better alignment of the respective businesses with their customers, strengthening their position in the relevant marketplaces and resulting in more sustainable long-term growth.”

STL has ensured that the economic interests of the shareholders of the Demerged Company will remain unchanged post-demerger. The process for final approval from the NCLT is projected to be completed within the next 2-3 months, marking the final step in STL’s strategic restructuring.