Tata Comm surges 9% on acquisition of majority stake in France's Oasis

Shares of Tata Communications surged 9 per cent to Rs 1,140 on the BSE on Thursday after the company announced the acquisition of majority stake in France-based embedded-SIM (eSIM) technology provider, Oasis Smart SIM Europe SAS (Oasis).

The Tata Group company's stock hit a record high in intra-day today, surpassing its previous high of Rs 1,103, touched on November 25, 2020. In the past six months, the stock has zoomed 90 per cent, as compared to 34 per cent rise in the S&P BSE Sensex.

According to press release, Oasis develops and provides advanced technologies and personalised services to enable the deployment of eSIM and SIM technologies. With this investment, eSIM technology will be fully integrated into Tata Communications MOVETM, enabling an end-to-end embedded connectivity solution and strengthening Tata Communications MOVE™ as a single source platform for global enterprise mobility needs, the company said.

Tata Communications will drive and accelerate product roadmap R&D with Oasis, leveraging and amplifying the growth in the mobility and IoT markets.

Forecasts predict that by 2025 there will be two billion shipped eSIM-enabled devices. eSIMs facilitate secure, reliable, and cost-efficient cellular connectivity for IoT and M2M applications. They enable significant ease of use with remote provisioning and the ability to connect with multiple mobile network operators, making subscription management easier for the end-users, with an added layer of security, the company said.

At 12:00 pm, the stock was trading 3 per cent higher at Rs 1,077 on the BSE, as compared to 0.51 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple folds, with a combined 430,000 equity shares changing hands on the NSE and BSE.