Tata Group subsidiary, Nelco, on Wednesday said that it made a strategic investment in Mumbai-based satellite network software provider, Piscis Networks. According to exchange filings made by Nelco, which offers satellite communications services to enterprises, the company has acquired a 9.09 per cent stake (1,111 equity shares) in Piscis for nearly Rs 1 crore in the company. Nelco further disclosed in its filings that the company may acquire up to 30 per cent of Piscis Networks.
On Wednesday, the company's stock closed 0.95 per cent lower at USD 711.80 per share. The company's stock rose 2 per cent in intraday trade following the investment announcement, but ended the day lower than it had on Tuesday. The BSE Sensex closed 0.56 per cent higher at 63142.96 points.
Customers in a number of industries, including aviation and maritime, rely on Nelco for satellite communications and network services. Nelco has teamed with Canadian satellite operator Telesat to provide communications and network access to on-ground clients in order to compete in this area.
Last May, the two companies successfully demonstrated their low Earth orbit (LEO)-based high-speed satellite broadband network services in India. The satellite service provider's enterprise, telecom, and government clients were invited to participate in the test.
Nelco's announcement comes as competitor satellite service provider OneWeb finished deploying 618 LEO satellites as part of a global constellation. The Bharti Enterprises-backed operator plans to launch satellite communications and network services in India, as well as international regions, by the end of 2023.