Tata Communications Ends Day with Impressive 8% Gain

Tata Communications Ltd delivered a strong performance in the stock market on Tuesday, ending the trading session with impressive gains of over 8%, even as broader market sentiment remained weak and volatile.

The stock opened at ₹1,361.05 on the Bombay Stock Exchange (BSE), starting the day slightly lower than its previous closing price of ₹1,372.40. This initial dip reflected the overall cautious mood in the market, influenced by weak global cues and growing concerns over a potential slowdown in the US economy. However, Tata Communications quickly shrugged off this weak start, gaining strong upward momentum as the session progressed.

The stock witnessed a sharp rally, surging to an intraday high of ₹1,500. This represented a significant jump from its opening level, with the stock holding on to most of these gains throughout the day despite the broader market’s choppy performance. Even as the benchmark indices faced selling pressure, correcting nearly 0.5% during the session before recovering to close flat, Tata Communications maintained its strength near the day’s peak.

The resilience of Tata Communications’ share price against the backdrop of weak and uncertain market conditions stood out as a positive signal for investors. The stock ultimately closed the session close to its intraday high, reflecting strong buying interest and positive sentiment surrounding the company despite the broader market challenges.

Tata Communications’ share price has shown signs of a strong rebound in recent trading sessions, even though it remains significantly below its 52-week high. The stock had reached a peak of ₹2,175 in October 2024, but has since undergone a substantial correction, reflecting broader market pressures and company-specific factors.

Despite this significant pullback, the stock has demonstrated notable strength in recent days. Over the last five trading sessions, Tata Communications’ share price has climbed by over 13%, signaling renewed buying interest and positive momentum. This recovery comes at a time when broader market conditions remain volatile, highlighting the stock’s resilience and the growing confidence among investors.

The recent upward movement indicates that the stock has managed to regain traction after its earlier decline, with market participants showing increased interest. This suggests that Tata Communications is currently navigating the market challenges with renewed strength, as reflected in its consistent gains over the past week.

Tata Communications Ltd provided an important update on February 28 regarding the planned sale of its wholly-owned subsidiary, Tata Communications Payment Solutions Limited (TCPSL). The company had initially disclosed that it had entered into a Share Purchase Agreement (SPA) with Transaction Solutions International (India) Private Limited on November 13, 2024. This agreement outlines the terms and conditions for the sale of Tata Communications’ entire stake in TCPSL.

The completion of this transaction is contingent upon the fulfillment of certain conditions precedent, as detailed in the Share Purchase Agreement. These include obtaining necessary regulatory and statutory approvals, as well as meeting other contractual requirements specified in the agreement. The company has indicated that the sale process will move forward once these conditions are satisfactorily met.

This strategic move reflects Tata Communications’ intent to streamline its business operations and focus on its core areas of growth. TCPSL is known for its role in the payment solutions sector, and the sale is expected to enable Tata Communications to reallocate resources and sharpen its business focus.

By updating the exchanges on the progress of this transaction, Tata Communications has provided clarity to stakeholders about the status and next steps involved in the divestment process. The outcome of this sale will depend on the successful completion of the outlined conditions and approvals from relevant authorities.

Tata Communications has officially announced the completion of its previously disclosed transaction involving the sale of its wholly-owned subsidiary, Tata Communications Payment Solutions Limited (TCPSL). The company confirmed that the transaction was successfully concluded and deemed effective as of February 28, 2025. As a result, TCPSL has ceased to be a subsidiary of Tata Communications Limited from that date.

This marks the culmination of a strategic move first disclosed on November 13, 2024, when Tata Communications entered into a Share Purchase Agreement (SPA) with Transaction Solutions International (India) Private Limited for the sale of its entire stake in TCPSL. The completion of the deal followed the satisfactory fulfillment of all conditions precedent outlined in the SPA, including obtaining necessary regulatory and statutory approvals.

The divestment reflects Tata Communications’ decision to streamline its business focus and reallocate resources toward its core operational areas. TCPSL, which played a key role in the payment solutions sector, is now under the ownership and management of Transaction Solutions International (India) Private Limited.

By completing this transaction, Tata Communications has taken a significant step in reshaping its business portfolio. The company’s confirmation of the deal’s completion provides clarity to stakeholders and reinforces its strategic intent to optimize its business operations.