Tata Communications locked in 5% upper circuit as stock turns ex-spin off

The Board of Directors of Tata Communications had fixed Wednesday, September 18, 2019, as the record date for determining the shareholders who shall be eligible to receive the equity shares of HPIL.

Shares of Tata Communications were locked in the upper circuit band of 5 per cent at Rs 273 on the BSE on Tuesday after the stock turned ex-spin off. On the National Stock Exchange (NSE), the stock was frozen at Rs 278, its maximum higher limit for the day after opening at Rs 265.

Till 10:56 am, a combined 20,681 equity shares changed hands and there were pending buy orders for 1.4 million shares on the NSE and BSE, the exchange data shows.

The Board of Directors of Tata Communications had fixed Wednesday, September 18, 2019 as the record date for determining the shareholders who shall be eligible to receive the equity shares of Hemisphere Properties India (HPIL).

Tata Communications on August 7 said its scheme of arrangement for demerger of surplus land from the company to HPIL had received approval from the Ministry of Corporate Affairs (MCA).

As per the demerger plan, the company would transfer the surplus land to HPIL after consequent issue of equity shares by HPIL to the shareholders of the company. HPIL shall issue and allot one equity share to each member of Tata Communications.

This will be followed by transfer of equity shares of HPIL allotted to Panatone Group Companies (collectively Panatone, Tata Sons Limited and Tata Power Company Limited) to the erstwhile shareholders of the company who had tendered shares in the open offer by Panatone and to the Government of India.