Tata Communications shares at year-high on demerger of VSNL land

Tata Communications shares on Friday surged over 7 per cent in morning trade, a day after the government approved demerger of surplus VSNL land into a separate company.

The issue of surplus land has been pending since Tata Communications acquired the PSU in 2002, as the land assets owned by VSNL were not part of the deal.

After making a bullish opening, shares of the company further gained 6.83 per cent to a 52-week high of Rs 264.05 on the Bombay Stock Exchange.

At the National Stock Exchange, the stock surged 7.38 per cent to a one-year high of Rs 263.90.

The surplus land has been lying unused since the acquisition. The land is estimated to fetch Rs 6,150 crore to the exchequer.

The demerger of 773.13 acres, spread over at least five locations including Delhi, Chennai and Pune, was proposed to be carried out through HPIL, a Special Purpose Vehicle formed through a Cabinet decision in 2005.

The Department of Telecommunication (DoT) has proposed government taking 51.12 per cent stake in Hemisphere Properties Ltd (HPIL).

Meanwhile, the BSE Sensex was trading 94.51 points lower, or 0.55 per cent, at 17,184.34.

With inputs from PTI