Tata's Nelco shares tumble 12% on Tuesday after ₹1,120 peak
Nelco, the Tata Group's satellite services company, saw its shares tumble 12% on Tuesday, the steepest fall since March 2020. This comes just a day after hitting a new high of ₹1,120.
The stock was trading 12.3% lower on Tuesday at ₹948.1, slipping below ₹1,000 after three trading sessions.
Still, Nelco is up 90.2% from its 52-week low of ₹500.1 earlier this year.
Nelco invests $20 million in Lunar Holdco
The sell-off happened right after Nelco announced it is investing $20 million in Lunar Holdco Inc. through compulsorily convertible debentures (CCDs) that carry a 7% annual compounded return and might convert to shares later (do not give any control for now).
Nelco says this is all about building long-term partnerships for satellite-based communication and IoT services in India and worldwide.
Despite the dip, this investment is strategic and aims to establish a long-term partnership for satellite-based D2D, IoT as well as related communication services in India and other nations.