Sterlite Technologies rose 2.6% to Rs 69.05 at 12:02 IST on BSE after the company said it has entered into a joint venture agreement with VISCAS Corporation.
The announcement was made during market hours today, 30 September 2014.
Meanwhile, the S&P BSE Sensex was up 44.89 points or 0.17% at 26,642.
On BSE, so far 2.59 lakh shares were traded in the counter as against average daily volume of 3.20 lakh shares in the past one quarter.
The stock hit a high of Rs 69.90 and a low of Rs 67.05 so far during the day. The stock had hit a 52-week high of Rs 74 on 8 September 2014. The stock had hit a 52-week low of Rs 19 on 30 September 2013.
The stock had outperformed the market over the past one month till 29 September 2014, surging 6.24% compared with Sensex's 0.15% fall. The scrip had also outperformed the market in past one quarter, jumping 8.11% as against Sensex's 5.96% rise.
The small-cap company has equity capital of Rs 78.79 crore. Face value per share is Rs 2.
Sterlite Technologies said that it has entered into a joint venture (JV) agreement with VISCAS Corporation, a leading Japanese company specialized in providing power transmission and distribution systems solutions globally. As part of this JV agreement, VISCAS Japan will invest into the existing power cable facility of Sterlite in Haridwar which is already serving the MV/HV power cables customers in India.
This venture is an important milestone in sustaining Sterlite's leadership in power transmission & distribution sector with an objective of addressing the growing extra high voltage underground power cabling requirements in India, Sterlite Technologies said in a statement.
Mr. Pravin Agarwal, Whole-Time Director, Sterlite Technologies said, "This partnership has the potential to attain leadership in the HV/EHV cables market in India in next 2-3 years. The country is implementing HV/EHV solutions in transmission and distribution segment of power to enhance efficiency and will require specialized technologies to address this need. Both the companies share a common vision and bring together complementary strengths for this venture".
Sterlite Technologies said that the closure of the transaction would be subject to necessary approvals.
VISCAS Corporation is a 50:50 JV partnership between Furukawa Electric Co. and Fujikura. Headquartered in Japan, VISCAS is a leading firm of power transmission and distribution system in the world.
Sterlite Technologies' net profit fell 58% to Rs 9.49 crore on 26.1% decline in net sales to Rs 550.68 crore in Q1 June 2014 over Q1 June 2013.
Sterlite Technologies develops & delivers products, solutions and infrastructure for telecom & power transmission networks, globally.
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