The shares of Tata Communications Limited opened their trading hour today at Rs 1,588 and currently are available for Rs 1,575, trading flat compared to the previous closing levels of Rs 1,582.75.
According to the recent regulatory filing the company published with the Bombay Stock Exchange (BSE), the company announced that it has entered into an agreement to acquire ‘Kaleyra’, a US-based communication service provider. The deal is expected to be completed within a period of six to nine months from the date of signing the agreement.
Tata Communications has agreed to acquire the shares of the company at a price of $7.25 per share making the total consideration to sum up to around $100 million. Moreover, all the outstanding debt will be assumed as a part of the deal.
“With this acquisition, we will further build intelligent, intuitive and innovative multi-channel communication solutions to unlock new growth opportunities for our customers.”, commented Mr. A.S. Lakshminarayanan, MD and CEO, Tata Communications.
The Tata Group company has been successful in improving its financial numbers with the operating revenues increasing from Rs 16,724 crores during FY21-22 to Rs 17,838 crores in FY22-23. Moreover, the profit after tax (PAT), keeping the timeframe the same, moved up from Rs 1,477 crores to Rs 1,766 crores.
The latest quarter showcases data where Promoters are holding a 58.86 percent stake and Foreign Institutional Investors (FIIs) holding a 16.99 percent stake in the company.
Tata Communications Limited is primarily engaged in the business of providing national as well as international data & voice transmission services, broadband services, etc. Since the deregulation of the Indian markets, the company become one of the global players in the industry.
Written by Amit Madnani
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