Sterlite Technologies Limited has informed the Exchange regarding 'Apportionment of Cost of Acquisition of Equity Shares of Sterlite Technologies Limited ( STL or Demerged Company ) and STL Networks Limited ( Resulting Company or STL Networks) consequent upon demerger '.
STLTECH · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Sterlite Technologies Limited (STL) has communicated the cost of acquisition split for shareholders following the demerger of its Global Service Business undertaking into STL Networks Limited. The NCLT Mumbai Bench sanctioned the Scheme of Arrangement on February 14, 2025, and the record date was April 24, 2025. Under the scheme, shareholders of STL received 1 equity share of STL Networks (face value Rs. 2) for every 1 share held in STL (face value Rs. 2). For income tax purposes, the original cost of acquisition of STL shares will now be split: 42.23% attributed to STL and 57.77% to STL Networks. The demerger is tax-neutral under Section 2(19AA) of the Income Tax Act, meaning no immediate tax liability arises for shareholders on receiving the new shares.
Shareholders who held STL shares as of April 24, 2025 will now hold shares in both STL and STL Networks, and their original purchase cost must be split in the 42.23:57.77 ratio when calculating future capital gains. The demerger is tax-neutral, so no tax is triggered at the time of the demerger, but the reallocation of cost basis will affect future tax calculations when shares are sold.