Tata Communications gains as board approves demerger of surplus land

The stock surged 9% to Rs 758 on the BSE after the company said the board approved demerger of around 773 acres of surplus land to a separate company and listing it subsequently.

Tata Communications surged 9% to Rs 758 on the BSE in early morning trade after the company said the board has approved demerger of around 773 acres of surplus land to a separate company and listing it subsequently.

"The board of directors of Tata Communications at its meeting held today has approved a draft scheme of arrangement and reconstruction between Tata Communications and Hemisphere Properties India Limited (HPIL) and their respective shareholders," Tata Communications said in a BSE filing.

The scheme provides for a demerger by way of reconstruction or splitting up the Company by way of transfer