Tata Group Satcom Stock Spikes 13% on Ex-Dividend Day, Here’s Why

  • Investing.com
  • Stock Market News
Tata Group Satcom Stock Spikes 13% on Ex-Dividend Day, Here’s Why
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the leading satellite communication services provider Nelco (NS: NELC ) spiked 12.6% on Tuesday and hit an intraday high of Rs 712.9 apiece as the stock turned ex-dividend for the financial year ended March 31, 2023, in the session.

The Board of Directors of Nelco recommended a final dividend of Rs 2 per equity share at Rs 10 each, translating to a 20% dividend for the financial year 2022-23, which is subject to the shareholders' approval at the company’s 80th Annual General Meeting (AGM), scheduled to be held on June 22, 2023.

The record date for was fixed as June 6, 2023, and shall be paid on or after June 26, 2023.

The Tata Group company has entered into an agreement with the Promoters and other shareholders of Piscis Networks on June 5, for an initial investment of Rs 99.99 lakh to subscribe 1,111 equity shares of the latter at face value of Rs 10 each, representing a 9.09% stake of Piscis Networks. 

As per the deal between the two companies, Nelco will subsequently be able to make further investments in Piscis Networks and increase its shareholding in the company up to at least 30%.

The investment will help the company offer integrated solutions to customers and improve their network performance, reliability and security, while also opening new business opportunities for Nelco.

The proposed investment will be completed within 120 days from the date of execution, and it will be conducted as a cash consideration.

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  • Avneet Singh @Avneet Singh
    Nelco is a no brainer
    Like 0

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