Sterlite Technologies (“STL”) has signed a business transfer agreement to transfer its digital business undertaking as a going concern to wholly owned subsidiary STL Digital on a slump sale basis. STL Digital is in the business of IT/ITES, professional and consultancy services, including cloud services, and other IT/ITES-related services. The digital business venture is currently operated as one of STL’s business divisions, with a focus on IT/ITES, professional and consultancy services, including cloud services, and other IT/ITES-related services. The digital business venture is on the rise and has enormous potential for future expansion. As of March 31, 2022, digital business contributed 0.03% of STL’s total revenue.
According to the terms of the business transfer agreement, the company received consideration of Rs 15 crore for the transfer of digital business, subject to working capital adjustments as of the closing date. It is expected to be finished on or before April 1, 2023. The following transaction is a related party transaction because it involves the holding company and its wholly owned subsidiary. The company’s shareholding pattern will not change as a result of the slump sale. Sterlite Technologies is a leading provider of end-to-end solutions for global digital networks.