Shares of Tata Communications Ltd rallied as the company has decided to sell South-African fixed-line unit Neotel to Liquid Telecom Group, majority owned by diversified telecom group Econet Wireless Global.
The stock gained as much as 7.99 per cent to their highest in over 11 months.
The company says the deal is worth 6.55 billion rand ($428.6 million).
Earlier in March, Tata Comm had said it was looking for another buyer for the unit after a deal with Vodacom Group Ltd, a unit of Vodafone, fell through.
More than 1.9 million shares change hands, about five times the 30-day moving average.
The stock is down 3.26 per cent this year as of Monday’s close ($1 = 15.2834 rand).