Tata Communications shares decline over 2% as company floats commercial papers to raise ₹465 crore

At close, Tata Communications shares tumbled 2.33% at ₹1,402.55 apiece on NSE. During the intraday trade, the company had touched its 52-week low of ₹1,401.20 on the 50-share index.

The commercial papers had been issued on February 21 with May 23, 2025, as the date of redemption, the company said in a regulatory filing.

"Tata Communications Limited has issued and allotted commercial paper aggregating to an amount of ₹465 crore. The said commercial paper is listed on the National Stock Exchange of India Limited on February 24, 2025," the exchange filing said.

The face value per security is ₹5 lakh.

The company has offered a discount of 7.47% per annum on the security.

Tata Communications reported a 424% year-on-year (YoY) increase in its consolidated net profit, which jumped to ₹236 crore in the third quarter of the 2024-25 fiscal year. In the same period last year, the company’s net profit stood at ₹45 crore.

The company reported a 3.8% rise in its revenue from operations to ₹5,798 crore, compared to ₹5,587.8 crore in the corresponding quarter last year.

The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹1,181 crore, up 2.4% from ₹1,153 crore in the year-ago period.

In Q3FY25, the company sold its entire stake in Tata Communications Payments Solutions (TCPSL). It is also expected to dilute its stake in a subsidiary, which will make it a minority shareholder.

“Q3 has been a satisfactory quarter with strong growth in digital revenues, improved margins, and enhanced free cash flow. We are advancing well in our review of subsidiaries, with a clear focus on optimising their performance and unlocking value," A.S. Lakshminarayanan, MD and CEO of Tata Communications, had said.