Sterlite Grid 5 Unlisted Shares

About Company

Sterlite Grid 5 Limited (SGL 5) is the resulting company formed through a Scheme of Arrangement initiated by Sterlite Power Transmission Limited (SPTL).

• The Board of SPTL approved the demerger on 28 September 2023.
• The purpose is to transfer SPTL’s Infrastructure (Infra) Business in India and Brazil into a separate, focused entity.
• SGL 5 will operate independently after the demerger becomes effective.
• SPTL will continue operating its Global Products & Solutions (GPS) business.
• The new structure aims to improve strategic clarity, corporate governance, and future fundraising or listing opportunities.

Business Model & Operations (Post Demerger)

SGL 5 will take over all infrastructure-related business segments:

India Infra Business

• All power transmission assets and infrastructure projects located in India.
• Ownership and operation of existing and upcoming transmission lines and networks.
• Continued participation in domestic power infrastructure tenders.

Brazil Infra Business

• Transmission infrastructure assets under Sterlite’s Brazil operations.
• Long-term concessions and operational assets within the Brazilian market.
• Focus on global expansion through regulated transmission projects.

Business Intent

• Build a dedicated infra-focused entity with clear revenue streams.
• Drive efficient asset development and monetisation.
• Create transparent reporting and independent growth planning.

Demerger Details

• The appointed date for the demerger is 1 January 2023, or another mutually agreed date.
• Upon approval, the Infra Business (India + Brazil) will officially transfer to Sterlite Grid 5 Limited.
• All assets, liabilities, contracts, and operations related to the Infra Business will shift to SGL 5.
• Sterlite Power (SPTL) will retain its GPS business exclusively.

Share Swap Ratio

As per the Scheme of Arrangement:

• Shareholders of SPTL will receive 1 equity share of Sterlite Grid 5 Limited (₹2 face value)
  for every 1 equity share of SPTL (₹2 face value) they hold.
• The ratio ensures a proportionate continuation of ownership into the new entity.

Approval Status & Effective Date

• The demerger will be effective only after approval by the Hon’ble NCLT (National Company Law Tribunal).
• Following NCLT approval, the Order must be filed with the Registrar of Companies (RoC).
• Only after this filing will SGL 5 legally come into existence as an independent company.
• As of now, the demerger is pending NCLT clearance.

Quick Summary

Sterlite Grid 5 Limited is being formed as a dedicated infrastructure entity to manage Sterlite Power’s India and Brazil Infra Businesses. With a clear separation from the GPS business and a 1:1 share swap structure, SGL 5 is positioned for focused growth, operational efficiency, and future capital-raising opportunities. While currently unlisted, the demerger enhances clarity and may support future listing or monetisation paths once the restructuring is complete.