Sterlite Optical announces buyback plan

Our Corporate Bureau

Mumbai, Aug 3: The board of Sterlite Optical Technologies Ltd (SOTL) has announced an open offer to purchase fully paid equity shares of Rs 5 each of the company at a price not exceeding Rs 250 per equity share.

The decision for the buyback was taken at a board meeting held on Friday. The buyback will be to a maximum extent of Rs 80 crore. In a notice to the Stock Exchange, Mumbai (BSE) the company said that the buyback will be in one or more tranches, and in any of the modes prescribed under the Act and/or regulations. The resolution of the board is, however, subject to the approval of the shareholders of the company at the ensuing annual general meeting.

The SOTL scrip which opened at Rs 196.30, peaked to an intra-day high of Rs 216 before closing at Rs 212.20 on the BSE on Friday.

SOTL had on Tuesday posted a 205 per cent increase in net profit at Rs 67.68 crore for the first quarter ended June 30, 2001 as compared with Rs 22.18 crore in the same quarter last year.

Total income for the quarter stood at Rs 173.9 crore as compared to Rs 49.75 crore last year. SOTL’s domestic sales increased by 348 per cent to Rs 132.20 crore against Rs 29.46 crore last year. Export sales were up 111 per cent at Rs 40.86 crore from Rs 19.22 crore in the same quarter last fiscal. Profit before interest, depreciation and tax for the quarter increased 170 per cent from Rs 29.45 crore to Rs 79.43 crore in the third quarter this year.

The SOTL board has recommended a dividend of 120 per cent, that is Rs 4.50 per share pro-rata for the nine months ended March 31, 2001. During the year the company allotted 79,996 equity shares of Rs 5 each of SOTL, which demerged from Sterlite Industries. The plant will come up at an estimated cost of $250 to $300 million.
SOTL chairman and managing director Anil Agarwal said that 75 per cent of the new project will be funded through internal accruals.