Nelco share price surge 6% in trade on Nov 26; why is stock rallying today?

Nelco shares have rebounded nearly 25 per cent from its 52-week low of ₹706.95 per share, touched earlier this year on March 3 on the NSE

Shares of computer hardware and equipment company Nelco were ruling higher on the bourses on Wednesday, November 26, after the company announced that it has received additional authorisation under its existing Unified License. The company's stock price advanced 5.83 per cent to log an intraday high of ₹882.8 per share on the NSE.

 

The stock has rebounded nearly 25 per cent from its 52-week low of ₹706.95 per share, touched earlier this year on March 3 on the NSE. However, Nelco shares are still down 41 per cent from their 52-week high of ₹1,502.75 per share, scaled on December 16, 2024, on the NSE.

 

The counter continues to see strong demand from investors. At 09:24 AM, Nelco stock was quoting at ₹864.95, higher by 3.70 per cent from the previous close of ₹834.10 on the NSE on Wednesday. Meanwhile, the benchmark NSE Nifty50 was trading at 25,967.15, up 80.80 points or 0.32 per cent.

 

So far during the day, a combined total of 0.10 million equity shares of Nelco, valued at ₹8.24 crore, changed hands on the NSE and BSE. As of November 26, the company's market capitalisation stood at ₹1,987.82 crore on the NSE.  CATCH STOCK MARKET LIVE UPDATES TODAY

Here’s why Nelco shares were ruling higher on Wednesday

The upward movement in the share price followed the company’s announcement that the Department of Telecommunications, Ministry of Communications, Government of India, has granted Nelco Limited (the ‘Company’) an additional authorization, namely UL VNO-GMPCS, under the company’s existing Unified License (Virtual Network Operator).

 

This authorisation will allow Nelco to sell VSAT services of other UL-GMPCS licensees.

 

"Wish to inform you that the Department of Telecommunications, Ministry of Communications, Government of India, has granted Nelco Limited (the ‘Company’) an additional authorisation, namely UL VNO-GMPCS, under the company’s existing Unified License (Virtual Network Operator)," Nelco said in an exchange filing.

 

The approval/license is valid for 10 years.

 

"It may be noted that the company’s Unified License and the validity of the additional UL VNO-GMPCS Services authorization will be co-terminus with the validity of the Unified License (VNO)," Nelco added in the exchange filing.