Shares in Tata Communications gain 4.3 percent after South Africa's Vodacom Group said on Monday it was in exclusive talks to buy the company's unlisted local unit, Neotel, in a potential $590 million deal.
Acquiring Neotel would be a major boost to Vodacom's ambitions to grow its data business in Africa's largest economy.
"Every US$100 mn of deal equity value adds Rs 15/share to fair value. However, we add a conservative Rs 30/share and raise our target price to Rs 250 and reiterate BUY," Kotak said in a report on Tuesday.
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