Business Standard

Tata Comm rises 4% on hopes of Cabinet nod for VSNL land sale

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SI Reporter Mumbai

Tata Communications is trading higher by 4% to Rs 199 in otherwise weak market, as the government plans to sell of the surplus land held by the special purpose vehicle. The Telecom Ministry has circulated a Cabinet note asking all the concerned ministries to give their comments in 15 days for selling 770 acres of surplus land of VSNL, a PTI report suggests.

In 2005, Cabinet had approved formation of a SPV to execute the transaction related to the surplus VSNL land. The sale of VSNL's (now Tata Communications) surplus land is likely to fetch the exchequer Rs 6,150 crore.

 

Tata Communications had acquired the PSU in 2002, but the deal did not include 773.13 acres of land assets owned by VSNL, which have been lying unused following the acquisition.

A combined 120,290 shares have changed hands on the counter on morning deals, against an average sub 100,000 shares that were traded daily in past two weeks.

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First Published: Dec 14 2011 | 10:27 AM IST

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