Tata Communications Ltd. received an approval from the board of directors on Thursday to raise up to Rs 1,000 crore through an issuance of non-convertible debentures, according to an exchange filing on Thursday.
"The Board of Directors, at the Meeting, reviewed and approved the proposal for raising of funds through issuance of Non-Convertible Debentures (‘NCDs') on private placement basis, for an amount up to Rs 1,000 crore," it said. "The Board also authorized an internal committee to take all actions in respect of finalization of terms of issuance and allotment of NCDs."
The telecommunications company also entered into an intra-group share purchase agreement for the acquisition of the entire equity share capital of its stepdown wholly owned subsidiary, Solutions Infini Technologies (India) Pvt., from Kaleyra SPA for an aggregate fair value consideration of Rs 123.6 crore.
The company recorded a profit of Rs 189.98 crore for the quarter ended June, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had a consensus estimate of Rs 351.1 crore.
The stock settled 0.44% higher at Rs 1,731.60 apiece on the NSE, compared to a 0.40% decline in the benchmark Nifty 50. Tata Communications' shares have fallen 6.45% in the last 12 months and risen 1.66% year-to-date.
Out of nine analysts tracking the company, six maintain a 'buy' rating, one recommends 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 2161,902 implies an upside of 9.8%.
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