Shares of Sterlite Technologies hit the 5% upper circuit on Friday after the company announced a Rs 3,000 crore capital expenditure plan to expand its optical fibre and connectivity manufacturing capacity. 

The board approved the Rs 3,000 crore investment on September 3, with the company planning to increase its existing optical fibre cable manufacturing capacity by around 50% by the end of FY29. The expansion is aimed at meeting growing global demand for high-density optical fibre cables and other connectivity products.

Sterlite Tech is also targeting a much larger scale of operations over the next few years. The company has set a goal of becoming one of the top five global players in optical connectivity solutions and is targeting revenue of around Rs 20,000 crore by FY29. 

The company expects AI-led data centre expansion, along with the broader growth in digital infrastructure, to support demand.

The capex announcement follows a strong order pipeline. Sterlite Tech recently secured an international supply contract worth around $288 million for high-density optical fibre cables. The company has also completed a Rs 1,500 crore Qualified Institutional Placement, which can help strengthen its balance sheet and support future investments.

At 2:08 pm, the shares of Sterlite Technologies were locked 5% higher at Rs 748.90 on NSE.

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