Tata Telecom surges on Avaya acquisition

DALAL STREET SPIKES

Tata Telecom was in limelight gaining 4.41 per cent on news that US-based Avaya has agreed to buy out the Tata group's 25.1 per cent stake in Tata Telecom. The stock finally ended at Rs 229.65 after touching the day's high of Rs 238.

According to reports, Avaya entered into a share purchase agreement with the Tata group on April 2 for the purchase of the 25.1 per cent stake of the Tata group.

Avaya has also come out with an open offer to acquire an additional 20 per cent stake in Tata Telecom at Rs 220 per share. The Tata Telecom stock was very volatile with volumes accounting for 42,466 shares at the BSE. For the third quarter ended December 2003, Tata Telecom reported a 70 per cent growth in net profit at Rs 9.04 crore.

On a 16.45 per cent growth in sales at Rs 97.77 crore as against Rs 83.96 crore in the same quarter last year.