NELCO to buy 9.09% stake in Piscis Network; stock zooms 13%

6 Jun 2023 , 10:47 AM

NELCO Limited’s stock price is trading about 13% higher so far in today’s trade as the company announces the acquisition of a 9.09% stake in Piscis Network. Further, the company’s stock is also trading ex-dividend today, which has added to the rally.

As per the exchange filing, NELCO has committed to an initial investment of Rs 99,99,100 to subscribe to 1,111 equity shares with a face value of Rs 10 each. This initial investment signifies 9.09% of the paid-up capital of Piscis Networks, as stated by the company.

Moreover, NELCO has the opportunity to pursue additional investments to raise its ownership stake to a minimum of 30% of Piscis Networks’ paid-up capital. However, the company clarified that such investments are contingent upon obtaining the requisite approvals and consents mandated by applicable laws.

NELCO Ltd, a subsidiary of the Tata Group, is an Indian company operating within the technology and telecommunications industry. 

At around 10.43 AM, NELCO was trading 12.98% higher at Rs 715.25, against the previous close of Rs 633.10 on NSE. The counter hit an intraday high of Rs 715.90 so far in the day.

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