The total potential value of the contract is estimated at approximately $1.11 billion based on prevailing selling prices of connectivity products. The allocation covers optical connectivity product supply across financial years FY27 to FY29, with purchase orders to be released periodically during the contract period.
The agreement includes a reciprocal risk-sharing framework defining mutual capped financial liabilities for both parties in case of demand shortfalls or supply capacity shortages.
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The contract is international in nature and is to be executed up to March 2029. The company stated that the promoter or promoter group has no interest in the awarding entity and that the contract does not fall under related party transactions.
“Under this agreement, STL, through its optical solutions, will support building AI data center infrastructure in the US for this hyperscaler. We are enabling connectivity backbone for the AI data centers,” said Ankit Agarwal, Managing Director, STL.
Shares of Sterlite Technologies Ltd ended at ₹441.40, up by ₹21.00, or 5.00%, on the BSE.
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(Edited by : Jomy Jos Pullokaran)
