Tata Communications’ has received the Telecom Commission, the highest decision making body of the communications ministry nod to hive off the 770 acres surplus land into a realty company. As the first step, the government will pick up majority stake in this realty company. However, the disposal of the land is subjected to the approval of Telecom minister Kapil Sibal and the Union Cabinet.
Telecom Commission has authorized the telecom department (DoT) to take all steps for the disposal of the asset, including its sale. However, the apex DoT body, has not yet taken a call on pricing of 2G airwaves, the future methodology to award these scare resources, spectrum sharing and new merger and acquisition rules.
Last month, the Tata’s reported the government that the sale of the surplus land is approximately expected to fetch revenues to the tune of about Rs 6,156 crore, marking the first time that the value of the land has been estimated since 2003. However, this estimated value is based on prevailing government rates and also takes into account that it cannot be used for residential purposes, the company said while adding that stamp duty and registration costs towards demerger will cost about Rs 427 crore.
The company’s net profit for the quarter ended June 30, 2011 rose by 20.59% at Rs 47.79 crore as compared to Rs 39.63 crore for the corresponding quarter last year. Its total income increased 7.63% at Rs 937.66 crore for the quarter under review from Rs 871.20 crore for the same quarter last year.
Company Name | CMP |
---|---|
Bharti Airtel | 1336.35 |
Vodafone Idea | 13.48 |
Indus Towers | 356.35 |
Tata Communications | 1742.00 |
Bharti Hexacom Ltd. | 916.70 |
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