The shares of Nelco Limited opened 9 per cent higher at Rs 845 on the last trading day of the week as against the previous close of Rs 778. In the early trading session, the stock was locked in an upper circuit of 10 per cent at Rs 856.
The rally started after the Satellite company and broadband services firm Intelsat Thursday announced that it will be collaborating with Tata Groups satellite services firm Nelco to roll out its inflight connectivity services in the Indian skies.
Intelsat is an operator of one of the world’s largest integrated satellite and terrestrial networks and a leading provider of inflight connectivity (IFC).
Nelco has the permit to provide in-flight telecom services in India. The company has been offering Aero IFC services for over two years now. To expand further the company is in the process to introduce these services to more airlines with its global partners.
As a part of the agreement, Intelsat will be providing end-to-end broadband coverage on domestic and international aircraft flying to and from an Indian airport as well as the aircraft flying over the country.
“As India’s leading Satcom service provider offering best-in-class services, we are now creating a great opportunity through this relationship with Intelsat for further growth of our Aero IFC services in the country in the coming years and we intend to be a leader in this market in India,” Nelco Managing Director and CEO P J Nath said.
Nelco, a part of the Tata Group, is a leading satellite communication service provider in India, providing highly reliable data connectivity solutions across the country for the Enterprise, Aero IFC, and Maritime sectors.
In the last five days, the shares of Nelco have jumped by more than 20 per cent. In a month it has delivered a return of more than 32 per cent. In a span of a year, the stock price has climbed from Rs 476 to the current levels representing a return of more than 80 per cent.
Written by Anoushka Roy
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