Tata Comm rings loud

Tata Communications is in the green today, currently up almost 2% at Rs.301.90. Yesterday, it showed a spike up in volumes of over 4 times.

The stock is up on expectations on monetizing its fixed line telephone business — Neotel — in South Africa. News is that it is close to selling it off  to Vodacom and though there is no official word yet from the management, news in the market is that the deal is valued at $450-500 million. This deal when it comes through, could signal the beginning of Tata Group’s exit from the telecom sector to bring down debt. Our Editor, Mr.SP Tulsian expects the price to touch Rs.312 in the short term.