Tata Communications shares hit record high in early trade; here’s why

Shares of Tata Communications Ltd hit a record high today after the firm said it plans to raise Rs 1,750 crore by issuing 1,75,000 non-convertible debentures (NCDs) of face value of Rs 1,00,000 each. Tata Communications shares hit a record high of Rs 1838.65 against the previous close of Rs 1820 on BSE. Total 5749 shares of the firm changed hands amounting to a turnover of Rs 1.04 crore on BSE. Market cap of the Tata Group firm climbed to Rs 52,055 crore. The stock fell to a 52-week low of Rs 1095.05 on September 26, 2022.

The large cap stock has gained 56.20% in one year and gained 38.54% since the beginning of this year.

In terms of technicals, the relative strength index (RSI) of the Tata Communications stock stands at 71.7, signaling it's trading in the overbought zone. Tata Communications shares have a beta of 1.1, indicating average volatility in a year. Tata Communications shares are trading higher than the 5 day, 10 day, 20 day, 50 day and 200 day moving averages.

The type of security will be rated, unsecured, listed, redeemable non-convertible debentures. The NCDs are proposed to be listed on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited (NSE).

The Tata Group firm reported a decline of 29.8 per cent in net profit to Rs 381.7 crore in the June 2023 quarter compared to Rs 544.8 crore in the corresponding period last year. Revenue from operations climbed 10.7 per cent to Rs 4,771.4 crore in the first quarter of current fiscal, compared to Rs 4,310.5 crore in the year-ago period. The data business revenue stood at Rs 3,912 crore, logged a growth of 17.1 per cent over the corresponding period last year.

Tata Communications is engaged in the business of providing international telecommunications services. The company’s segments include Voice Solutions (VS), Data and Managed Services (DMS) and Real Estate (RE). The VS segment includes international and national long distance voice services. The DMS segment includes corporate data transmission services, virtual private network signaling and roaming services, television, and other network and managed services. The RE segment includes lease rentals for premises given on lease and does not include premises held for capital appreciation.

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