Sterlite Power Transmission Limited (SPTL) has announced the strategic decision to demerge its power transmission infrastructure business (BOT model), spread across India and Brazil.
The demerged SPTL entity will continue to hold the Global Products and specialised engineering, procurement and construction services business as well as the convergence – Fiberco business. The power transmission infrastructure business encompasses the transmission assets in India and Brazil, which will now be transferred to Sterlite Grid 5 Limited (SGL 5). Both SPTL and SGL5 will have independent Boards and focused executive management teams. Under the Board of Directors-approved Demerger scheme, existing Sterlite Power shareholders will receive one additional share of SGL5 for every share of SPTL they hold. The company has filed the demerger scheme with National Company Law Tribunal Mumbai for approval. The approval process is expected to be concluded within the next 6 to 8 months, as it entails securing a range of approvals, including those from shareholders, creditors, and various regulatory authorities.