Shares of Nelco, India’s leading satellite communication service provider, hit 10% upper circuit in Friday’s intraday trade on the BSE. The spike in share price came after Nelco entered into an agreement with Intelsat, the operator of one of the world’s largest integrated satellite and terrestrial network and leading provider of inflight connectivity (IFC), on Thursday.
On Friday, the counter rose by Rs 77.85 or (10.00%) to Rs 856.65 per share on the BSE. Nelco is a multibagger stock that has yielded 80% return in the past one year. In two years, the stock clocked 296% return, while it gave around 850% return in the past five years. The scrip’s 10-year return stands at 1675%. It rose over 30% in the past one month. The stock traded at 52-week high value of Rs 968.55 on October 19 last year, while it touched a year low of Rs 453.55 per share on October 26 in the previous year.
This agreement is welcome news for Intelsat’s airline partners and flyers as they will enjoy endto-end broadband coverage on domestic and international aircraft flying to or from an Indian airport, as well as aircraft flying over the country, said Nelco in statement on Thursday
“In addition to expanding our service coverage area for current customer airlines, our agreement with Nelco opens the possibility for Intelsat to serve India’s domestic airlines,” said Jeff Sare, president of Commercial Aviation at Intelsat. “This is a fast-growing airline market, and there is considerable untapped potential for IFC growth.”
Nelco, a part of the $128 bn Tata Group, has been offering the Aero IFC services for more than two years with plans to introduce these services to more airlines in collaboration with its global partners.
Nelco will provide these services using Intelsat’s IS-33e high throughput satellite. IS-33e was launched in 2016 that provides C and Ku-band connectivity to parts of Asia, Europe, Africa, and the Middle East. Intelsat’s IS-33e satellite is approved by Indian government regulators, paving the way for coverage with no interruptions or blackout zones. The service is available on Intelsat partner airlines and their passengers on aircraft now.
Intelsat, which operates satellite telecom network is building the the world’s first hybrid, multi-orbit, software-defined 5G network designed for simple, seamless, and secure coverage precisely, asper the company.