Sterlite Technologies Limited (STL) has signed an amended and restated agreement on March 27, 2023, with Skyvera LLC, through its Indian subsidiary, to transfer its telecom products and software business by way of an asset sale.

The transfer was initially intended to be by way of slump sale as a going concern basis, as previously disclosed in the company’s January 31, 2023 announcement. TelcoDR, a global acquirer of telecommunication software businesses based in the United States, operates and transforms telecom software companies by offering support, promoting product innovation, and providing a pathway to harness the potential of the public cloud. Skyvera LLC is a subsidiary of TelcoDR.

The aggregate consideration for selling identified assets and carving out intellectual property is $15 million, subject to closing adjustments. The Telecom Products and Software business had revenues of Rs 171.4 crore in FY2022, representing around 3% of the company’s turnover.

Sterlite Technologies’ shares closed at Rs 143 per share, indicating a nearly 3.6% decrease from the previous closing price. The stock has been on a downtrend, losing 11.32% in the last five days and experiencing a 37% drop in the past year, with a 20% decrease this year alone. Sterlite Technologies’ market capitalization on the Bombay Stock Exchange (BSE) also fell to Rs 5,670 crore. During the trading day, a total of 0.70 lakh company shares were exchanged, resulting in a turnover of Rs 1.01 crore on BSE.

Sterlite Technologies, a prominent provider of complete solutions for digital networks worldwide, achieved a net profit of Rs 50 crore in Q3FY23, in contrast to a net loss of Rs 138 crore in Q3FY22. The company’s operational revenue also experienced a significant growth of 46.23%, reaching Rs 1,882 crore during the quarter that ended December 31, 2022, compared to Rs 1,287 crore in Q3FY22.