Shares of Nelco Limited are currently trading at Rs 728, gaining 15 percent as compared to the previous closing levels of Rs 63.10. The company has a market capitalization of Rs 1,661 crores.
Such sharp movements in stock prices are witnessed after the company, in a filing with the BSE, announced an investment in the shares of ‘Piscis Networks Private Limited’.
The Tata Group-led company will make an initial investment of Rs 99,99,100 which is equivalent to 1,111 equity shares. The consideration for the investment is in cash which would be done via one or more tranches.
The above investment represents 9.09 percent of the paid-up share capital of Piscis Networks. Subsequently, the investment would increase to atleast 30 percent and the same shall be completed within 120 days from the date of execution of the agreement.
The infusion of money in Piscis opens up new business opportunities for the company. Moreover, it will be able to offer integrated solutions to the customers thereby improving its network performance.
Incorporated in July 2021, Piscis Networks provides a software-defined wide-area network (SD-WAN solutions). The company had a turnover of Rs 6.77 Lakhs during FY2021-22 and Rs 98.10 Lakhs in FY2022-23.
Recently, Nelco announced its financial results for FY2022-23 which showcased an operating revenue of Rs 313 crores, up from Rs 260 crores of revenues in the previous financial year. Moreover, the net profits increased from Rs 16 crores during FY21-22 to Rs 20 crores in FY22-23.
Nelco Limited provides a solution for the management of network connectivity, networking services, and turnkey communication systems supply and integration. It is also engaged in the sale of security and surveillance products. The company has one segment: Network Systems, consisting of Satcom Services.
Written by Amit Madnani
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