Shares of Tata Group company, Nelco zoomed 5 per cent to hit the upper circuit and intraday high of Rs 678.60 after the company announced a strategic cooperation agreement with Omnispace to enable and distribute 5G non-terrestrial network (NTN), direct-to-device satellite services.
The stock opened 5 per cent higher at Rs 678.60 against the previous close of Rs 646.30 on BSE. With a market capitalisation of Rs 1,548 crore, the shares stand higher than 5 day, 20 day and 200 day moving averages but lower than 50 day and 100 day moving averages.
In the past one year, the share price of this leading satellite communication service provider in India jumped from Rs 188 to Rs 678.60, logging around 260 per cent return in this period.
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 18 lakh today. Long-term investors have made big gains by investing in this stock as it has surged over 1,100 per cent in the last ten years.
Nelco informed that the collaborative effort will expand the reach of 5G using satellite communication throughout India and South Asia. This strategic agreement with Omnispace will focus on enabling the use of 5G direct-to-device communications using, Omnispace’s global NGSO satellite network across various market segments, the company said.
“We are excited to be working with Nelco, a proven innovator which shares our vision, to deliver for the first-time, game-changing solutions for enterprise customers in India through the power of ubiquitous, global 5G communications,” said Jay Yass, Chief Corporate Development Officer, Omnispace.
“Together with Nelco, we are working to deliver reliable mobile connectivity solutions to enhance growth and innovation across the industries and regions it serves," he added.
Nelco provides satcom services to enterprise customers for business-critical applications across many industry segments, including Aero IFC and Maritime communication.
The Omnispace global network will be based on 3GPP 5G NTN standards, offering seamless interoperability across cellular and satellite networks, delivering the power of 5G to any compatible device.
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