Tata Communications Share Price at 7-yr High

Tata Communications share price jumped 7 per cent, hitting 7-year high at Rs.519 per share.
It has risen 12 per cent in the last 2 days. Stock traders are actively buying shares of Tata
Communication as the Indian government is actively looking at demerging extra land of VSNL
land that it owns. Tata Communications had bought 45 per cent stake in VSNL for around
Rs.1,500 cr, as part of government asset-sale programme in the year 2002. The government
offers tax exemption for demerger of extra or surplus land and now the company can transfer
land without paying capital gains tax.
The land sale shall aid Tata Comm to raise equity funding and also portion of the land which is
locked with the surplus land can be freed up. Tata Group is to get 4 per cent of proceeds of
the land sale while the government will get 51 per cent, shareholders who tendered in the
open offer in the year 2002 shall get 20 per cent and rest 25 per cent shall go to current
minority shareholders of the company.
Meanwhile, Tata Communications share price was trading 1.21% higher at Rs.488.45 on NSE
today. It opened at Rs.488.50 from a previous closing of Rs.482.60.
Lok Sabha approved Taxation Laws (Amendment) Bill, 2016 which seeks to expand meaning
or rather definition of "demerger" to alleviate the splitting or reconstruction of former public
sector companies. Finance Minister, Arun Jaitley stated that it would help in utilising a large

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chunk of VSNL land by the Indian government. He also added that the vacant land could be
used for numerous purposes encompassing construction of houses for the government
employees and therefore it would be a great asset.
To acquire information on the support and resistance levels of the stock and to know more
about its financials kindly visit Tata Communications share price history.

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