Synopsis: Tata Group stock shares rose over 5% after the company announced a May 1 board meeting to consider fundraising via loans or NCDs, aimed at investing in satellite communication technologies and supporting future growth.
The shares of this company provide domestic satellite communication services to a close user group networks are in the spotlight after it jumped by 5% in today’s market session following the announcement to consider fundraising.
With a market capitalisation of Rs. 1,653 cr, the shares of NELCO Ltd were trading at Rs. 724.55 per share, increasing over 5% in today’s market session, making a high of Rs. 745.40, up from its previous close of Rs. 706.60 per share. The stock has declined 11% over the past year, remained flat on a year-to-date basis, dropped 15% in the last six months, and surged 43% over the past month.
What’s the News
NELCO Ltd has informed that a meeting of its Board of Directors is scheduled for May 1, 2026. The meeting will consider key corporate matters, including a proposal related to fundraising.
The company is planning to raise funds through loans and/or issuance of Non-Convertible Debentures (NCDs) on a private placement basis or via other permissible routes. The proposed funds are intended to support investments in emerging satellite communication businesses and technologies, aligning with the company’s strategic growth focus in this sector.
If the proposal is approved by the Board, the company may also initiate a postal ballot process to seek approval from its shareholders, as required under applicable laws and regulations. This move reflects NELCO’s intent to strengthen its position in the evolving satellite communication industry while ensuring compliance with regulatory frameworks.
NELCO Ltd is a part of the US$116 Bn Tata group, was established in 1940 and has evolved into a key player in India’s satellite communication and network solutions space. Over the years, the company has realigned its business focus to support enterprise and government clients with advanced, technology-driven services.
The company provides solutions in VSAT connectivity, satellite communication projects, and integrated security and surveillance systems. It supports customers across industries with consulting, customization, system integration, and end-to-end network management, backed by strong infrastructure and operational expertise.
NELCO holds key licenses from the Department of Telecommunications, including VSAT, ISP, and Inflight & Maritime Communication (IFMC). It delivers reliable satellite-based connectivity for remote and pan-India operations and is also a trusted partner for government, defense, and enterprise sectors in security and surveillance solutions.
Sales of the company increased from Rs. 78.30 cr in Q3FY26 to Rs. 79.18 cr in Q4FY26. Operating profit decreased from Rs. 7.82 cr to Rs. 5.47 cr. Net profit rose from a loss of Rs. 1.19 cr to a profit of Rs. 1.09 cr.
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