Today, a smallcap company named Sterlite Technologies Limited surprised investors in the stock market. The company’s shares saw a tremendous rise. This stock climbed up to 13% during trading. By the time the news was written, it was trading at Rs 85 with a gain of 10.50%.

The reason behind this boom is a major government contract – which the company has received from BSNL (Bharat Sanchar Nigam Limited). This deal is also considered to be very important for the company.

Sterlite Technologies have acquired a contract of ₹ 2,631.14 crore with Dilip Buildcon. This project comes under the Bharatnet scheme of the Central Government, in which internet networks will be expanded in remote areas like Jammu and Kashmir and Ladakh.

The project will be developed ‘Middle Mile Network’, including network construction, supply of equipment, network operations, upgrade and maintenance up to 10 years. The entire project will be completed in three years, after which the same companies will maintain the network for the next ten years.

The government aims to strengthen digital sovereignty and BSNL-MTNL. The project is part of the government’s strategy in which the central and state governments are being encouraged to adopt BSNL/MTNL services. The government wants to promote data security through this project. This will give economic strength to government telecom companies and will get a new dimension to the Digital India Mission.

In fact, the central government has cited the decision of the cabinet taken in 2019, asking all ministries and departments to compulsorily use the services of BSNL and MTNL. Now this initiative is moving towards expansion to the state governments.

Mutual funds are also showing trust

In view of this project and the possibilities of the company, mutual funds are also increasing their stake in Sterlite Technologies.

Mutual fund stake in the March 2025 quarter: Earlier 6.57%, while now: 8.93%.

Keep an eye on

Sterlite technologies already have a strong appearance in the telecom and digital infrastructure sector. Such contracts will not only increase its income but it can also become a reliable option for long -term investors.

However, smallcap stocks are more unstable, so investors should take a decision only after financial advice and risk assessment.