Tata Communications Plans to raise Rs 465 Crore via Commercial Papers

Tata Communications' shares are likely to attract attention on Tuesday, February 25, after the company issued commercial papers to raise ?465 crore. The papers, issued on February 21, are set to mature on May 23, 2025, according to a regulatory filing.

The exchange filing says "Tata Communications Limited has issued and allotted commercial paper aggregating to an amount of ?465 crore. The said commercial paper is listed on the National Stock Exchange of India Limited on February 24, 2025".

Tata Communications has set the face value of its commercial papers at ?5 lakh, offering a 7.47% annual discount on the securities. Shares of the company closed 0.098% lower at ?1,435.95 on Monday, hitting a 52-week low of ?1,415.10 during the day.

Despite this, the company reported a remarkable 424% year-on-year (YoY) increase in net profit, which surged to ?236 crore for Q3 FY25, compared to ?45 crore in the same period last year. Revenue from operations rose 3.8% to ?5,798 crore, up from ?5,587.8 crore, while EBITDA grew 2.4% to ?1,181 crore.

In Q3, Tata Communications also sold its entire stake in Tata Communications Payments Solutions (TCPSL) and is expected to further dilute its stake in another subsidiary, transitioning to a minority shareholder role.

A.S. Lakshminarayanan, MD and CEO of Tata Communications, says “Q3 has been a satisfactory quarter with strong growth in digital revenues, improved margins, and enhanced free cash flow. We are advancing well in our review of subsidiaries, with a clear focus on optimising their performance and unlocking value".

Read More News :

Airtel Partners with Apple to Offer Exclusive Streaming & Music Services

Delhivery scales up road train services for auto and FMCG sectors