Tata Communications Ltd enters into BTA to hive off non-network IoT business

Tata Communications Limited has entered into a business transfer agreement ('Agreement') for sale / transfer / hive-off of the Company's non-network Internet of Things business comprising of Device, Application, Platform and Managed Services components ('identified business undertaking') to its wholly-owned subsidiary, Tata Communications Collaboration Services Private Limited (TCCSPL) as a going concern on 'slump sale' basis.

The transfer of the identified business undertaking to TCCSPL is subject to the satisfaction of conditions precedent as stipulated in the Agreement and receipt of such permissions and consents, that may be required.

The networth, basis the carved out Balance Sheet, as of September 30, 2022, was ₹42.34 crores. The turnover and networth from non-network Internet of Things business comprising of Device, Application, Platform and Managed Services components ('identified business undertaking') has not been prepared (or ascertained) at this stage.

The hive-off of the identified business undertaking to TCCSPL will support and simplify the IoT business and enable it for growth, focused on customers' issue-based problem solving in a network agnostic way, generating customer value creation and being the market leader in the IOT segment.

Shares of Tata Communications Limited was last trading in BSE at Rs. 1367.25 as compared to the previous close of Rs. 1276.50. The total number of shares traded during the day was 136414 in over 8554 trades.

The stock hit an intraday high of Rs. 1386.50 and intraday low of 1282.35. The net turnover during the day was Rs. 185137970.00.

Source : Equity Bulls

Keywords

TataCommunications INE151A01013 BTA SlumpSale TataCommunicationsCollaborationServices