Tata Communications Ltd witnessed a significant surge in its share price on Tuesday, closing the trading session with gains exceeding 8%. The stock opened at ₹1361.05 on the Bombay Stock Exchange (BSE), slightly lower than its previous closing price of ₹1372.40 amid weak market sentiment. However, as the trading session progressed, Tata Communications share price saw strong upward momentum, reaching an intraday high of ₹1500 before ending the day close to this peak level.

Market Performance and Recent Gains

Despite the broader market facing volatility due to concerns over a US economic slowdown and weak global cues, Tata Communications stock managed to sustain its gains throughout the session. While the benchmark indices corrected nearly 0.5% during the day before recovering to end flat, Tata Communications outperformed the broader market trend.

The stock has shown a remarkable recovery, rebounding by over 13% in the past five trading sessions, even though it has witnessed a significant correction from its 52-week high of ₹2175 recorded in October 2024.

Key Development: Divestment of Tata Communications Payment Solutions Ltd

One of the key developments surrounding Tata Communications Ltd was the successful completion of the sale of Tata Communications Payment Solutions Ltd (TCPSL). On February 28, 2025, Tata Communications announced that it had finalized the transaction to sell its entire stake in TCPSL to Transaction Solutions International (India) Pvt Ltd (TSI). This divestment aligns with Tata Communications' strategic shift towards focusing on high-growth areas such as network services, cloud, cybersecurity, IoT, media services, and digital interactions.

Transaction Details and Strategic Significance

Tata Communications initially signed a Share Purchase Agreement (SPA) on November 13, 2024, to divest 100% of TCPSL to TSI, a majority-owned subsidiary of Australian financial services provider Findi Ltd (ASX: FND). The transaction was completed after securing regulatory approval from the Reserve Bank of India (RBI) and fulfilling all agreed conditions.

Following the completion of the deal, TCPSL is no longer a subsidiary of Tata Communications. The move is expected to enable Tata Communications to streamline its business operations and enhance its focus on core digital transformation services.

Statements from Key Executives

Kabir Ahmed Shakir, CFO, Tata Communications, emphasized that the divestment is a significant milestone for the company, allowing it to refine its portfolio and concentrate on areas with long-term growth potential. He stated:

"This divestment marks a significant milestone in our journey to streamline our portfolio and focus on areas that drive long-term growth and innovation. We are confident that TSI is well-positioned to drive the next phase of growth for TCPSL and will further strengthen and scale this business, ensuring continued value for customers and stakeholders."

On the buyer’s side, Deepak Verma, MD & CEO of TSI, highlighted the importance of the acquisition, stating:

"The acquisition of Tata Communications Payment Solutions Ltd is a critical piece in our journey to become the most trusted enabler of financial empowerment for India’s underserved. TCPSL’s current ATM portfolio, white label license, and Payment Switch give us immediate scale, as well as the ability to deploy ATMs to our merchant network, transforming them into a full-stack financial hub."

Impact of the Acquisition on TSI and Findi Ltd

With this acquisition, Findi Ltd and its subsidiary TSI have gained immediate access to:

• A White Label ATM platform and license.

• A Payments Switch.

• A network of 4600+ ATMs across India.

• The ability to expand ATM deployment to its merchant network of over 180,000 retailers under the FindiPay and BankIT brands.

Both Tata Communications and TSI have assured a seamless transition for employees, customers, and partners, ensuring that services remain uninterrupted.

Market Outlook and Future Growth

With Tata Communications shifting its focus toward digital infrastructure and high-growth tech segments, the stock is expected to remain in focus among investors. The recent share price rally suggests renewed investor confidence in the company’s strategic direction. However, the stock remains significantly below its 52-week high, indicating potential room for further recovery depending on overall market trends and the company's execution of its growth plans.

Conclusion

Tata Communications Ltd has demonstrated strong resilience in its stock performance despite broader market weakness. The recent 8% surge in share price, coupled with its 13% gain over five trading sessions, underscores the company’s positive market sentiment. Additionally, the successful divestment of TCPSL marks a strategic move towards business realignment and future growth. Investors will continue to watch how the company capitalizes on its core digital services and expansion plans in the coming months.

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