Tata Communications stated that its non-network related Internet of Things business will be transferred to Tata Communications Collaboration Services (TCCSPL) as a ‘slump sale.’ The company has agreed to sell its non-network IoT business, which includes device, application, platform, and managed services components, to TCCSPL for Rs 42.34 crore.
This transaction falls within the realm of related party transactions, and we have determined its value using the arm’s length pricing principle. The terms of the transfer will only go into effect once all conditions precedent have been met, as specified in the agreement. This may include receiving the necessary permissions and consent from relevant parties.
This proposed plan will make it easier to do business in the IoT segment and enable growth by focusing on solving customer problems in a network-agnostic way, creating value for customers, and becoming the market leader.
Tata Communications is dedicated to providing the next level of intelligence powered by the cloud, mobility, internet of things IoT, collaboration, security, media services and network services. They believe that this will create a new world of communications.
The company’s net profit increased by 25.1% to Rs 532.29 crore, and the net sales rose 6.2% to Rs 4,430.74 crore in Q2 FY23 compared to Q2 FY22.
With this transaction, Tata Communications will continue to focus on its core strengths, leading the way in delivering world-class communications services and solutions. It is expected that this move will enable the company to better serve its customers while continuing to meet global trends.
The proposed transaction is subject to the approval of the statutory authorities and is expected to be completed in a few months. We will provide more information as it becomes available.
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.