Tata Communications: In the December quarter, Tata Communications’ profit has increased by 5 times, even today, the shares of the company have seen a huge decline. The stock fell nearly 7 per cent in Wednesday’s trade to Rs 1040. While on Tuesday it closed at a price of Rs 1129. In fact, AC Media reports that the central government is set to sell its remaining 26.12 per cent stake in Tata Communications Limited, formerly Videsh Telecom Corporation Limited (VSNL); Due to this, investors have sold heavily in the stock.
Shares fall 7 percent
Tata Communications shares fell drastically in Wednesday’s trading. The largecap stock fell nearly 7 per cent to Rs 1040 today, closing at Rs 1129 on Tuesday. The 52-week high for the stock is Rs 1168. The stock had seen a steady rise for the last 4 days. Today the company’s stock opened at Rs 1085. During this time the market cap of the company also came down to Rs 30053 crores. In March 2020, the company’s stock had come at a price of 200 rupees, after which it has increased up to 6 times.
Government is preparing to sell stake
The central government is set to sell its remaining 26.12 per cent stake in Tata Communications Limited. For this, the government will bring offer for sale (OFS). The Modi government hopes to get Rs 8000 crore from it. This will also help in achieving disinvestment targets for the financial year 2020-21. Under the central government’s plan, the government will sell some of its stake in the company to the Tata group, while some of it will be sold in the stock market through OFS. In this context, Deepam said that this deal will be completed on 20 March 2021.
First Foreign Communication Corporation Limited was named
The public sector company Videsh Sanchar Nigam Limited (VSNL) was privatized in 2002. The company’s 25 per cent shares were sold to strategic partner Panatone Finvest Limited with management control being handed over. The name of this company was later changed to Tata Communications Limited. Promoters hold 74.99 per cent stake in Tata Communications Ltd shareholding, of which Government of India holds 26.12 per cent, Panatone Finvest holds 34.80 per cent, Tata Sons holds 14.07 per cent and the remaining 25.01 per cent is held by the public.