This Tata Group Stock Soars Up To 14% On Account Of Acquisition Announcement

The share price of Nelco Limited, a Tata Group company, has rallied by nearly 14.1% in the morning trading session on Tuesday due to its acquisition announcement. The company informed about it through the securities exchange filing.

As per the filing, under the approval of its Board of Directors, the company has entered into agreement(s) with the promoters and other shareholders of Piscis Networks Private Limited on 5th June 2023 for an initial investment of Rs 99,99,100 to subscribe 1,111 equity shares of Rs 10 each representing 9.09% of the paid-up capital of the latter.

They have also agreed to subsequently make further investment to increase the company's shareholding up to least 30% of the paid-up capital of Piscis Networks. This shall be subject to approvals and consents as may be required under applicable law.

About Nelco

Nelco Ltd is a small cap company established in 1940 and is a part of the leading business house - the Tata Group, operating in the telecommunications sector. The company is focused on system integration and product management for industrial controls, power, electronics, defence electronics, VSAT networks and automation. It has a market capitalisation of Rs 1,651.82 crore.

In last one the year, the share price of this company has rallied by 11.3%, although on an intraday basis, it has surged by nearly 14%, while over three years, it has zoomed by 269%. The 52-week high is at Rs 1,089.95 per share and the 52-week low is at Rs 487.

About Piscis Networks

Piscis Networks Pvt Ltd is an India-based OEM company that provides a software defined-wide area network (SD-WAN) solution to organizations of all sizes. The product, SD-WAN, is designed to help organizations improve their network performance, reliability and security while reducing costs. The company was started in 2021 and is a start-up.