Tata Communications said it will transfer its non-network Internet of Things (IoT) business to its wholly-owned subsidiary, Tata Communications Collaboration Services (TCCSPL), as a going concern on 'slump sale' basis.
The company has entered into a business transfer agreement ('agreement') for sale/transfer/hive-off of the company's non-network IoT business comprising of device, application, platform and managed services components ('identified business undertaking') to TCCSPL for a cash consideration of Rs 42.34 crore.The transaction is within the ambit of related party transactions and the value has been ascertained in accordance with arm's length pricing principle. The transfer is subject to the satisfaction of conditions precedent as stipulated in the agreement and receipt of such permissions and consents, that may be required.
The proposed plan will support and simplify the IoT business and enable it for growth, focused on customers' issue-based problem solving in a network agnostic way, generating customer value creation and being the market leader in the IoT segment.
Tata Communications is engaged in the next level of intelligence powered by cloud, mobility, internet of things IoT, collaboration, security, media services and network services, we at Tata Communications are envisaging a new world of communications.
The company's consolidated net profit jumped 25.1% to Rs 532.29 crore on 6.2% rise in net sales to Rs 4,430.74 crore in Q2 FY23 over Q2 FY22.
The Tata Comm scrip was down 0.80% to Rs 1,356.25 on the BSE.
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