Tata communications to transfer IoT business

Tata Communications Limited informed that the company has entered into a business transfer agreement for the sale of its non-network Internet of Things business comprising of Device, Application, Platform, and Managed Services components. 

The company has agreed to sell the IoT business to its wholly-owned subsidiary, Tata Communications Collaboration Services Private Limited (TCCSPL) as a going concern on a ‘slump sale’ basis. 

The transfer of the identified business undertaking to TCCSPL is subject to the satisfaction of the Agreement’s conditions precedent and the receipt of any necessary permissions and consents, said the company in its exchange filing. 

The transfer of the identified business undertaking to TCCSPL will support and simplify the IoT business, allowing it to grow by focusing on customers’ issue-based problem-solving in a network-agnostic manner, generating customer value creation, and becoming the market leader in the IoT segment. 

The company has agreed to pay a consideration of ₹42.34 crore. 

At around 12.51 PM, Tata Communications was trading at ₹1,356.40 apiece, down by 0.79% from its previous closing of ₹1,367.25 on the BSE. The scrip touched an intraday high and low of ₹1,379.60 and ₹1,351 respectively.