Tata Communications Dissolves Indirect Subsidiary BUC Mobile; Share Price Drop by 4.47%

Tata Communications shares dropped by 4.47% after the company notified the National Stock Exchange of India and BSE that its wholly owned indirect subsidiary, BUC Mobile, Inc., had been voluntarily dissolved with effect from February 16, 2026, following completion of requisite filings with the Secretary of State of Delaware, United States of America.

The intimation, issued under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, referenced email communication dated February 25, 2026 confirming the dissolution. The February 26, 2026 disclosure also cited SEBI Circular No. SEBI/HO/CFD/PoD-2/CIR/P/0155 dated 11 November 2024 and was signed by Zubin Adil Patel, Company Secretary and Compliance Officer.

Dissolution Completed; No Sale Or Consideration Involved

The company clarified that no agreement for sale had been entered into, as the entity has been dissolved. Accordingly, no consideration has been received by Tata Communications.

BUC Mobile, Inc. was domiciled in Delaware and classified as a wholly owned indirect subsidiary of the listed entity. The dissolution became effective on February 16, 2026 upon completion of statutory filings in that jurisdiction.

Under the annexure submitted to the exchanges, the subsidiary contributed ₹ 766.70 crore to consolidated turnover in FY25, representing 3.32 per cent of total revenue for the financial year. Its net worth for FY25 stood at ₹ 790.15 crore, accounting for 12.87 per cent of consolidated net worth.

The company further stated that the transaction does not fall within the ambit of related party transactions and is not undertaken pursuant to a scheme of arrangement under Regulation 37A of the LODR Regulations. Disclosures relating to slump sale or amalgamation were marked not applicable.

Regulation 30 of the LODR framework requires listed entities to disclose material events, including sale, disposal or cessation of subsidiaries. The November 2024 SEBI circular prescribes a standardised annexure format mandating quantitative details such as turnover and net worth contribution of the subsidiary for the most recent financial year.

Stock Market Snapshot

Shares of Tata Communications Limited were trading at ₹ 1,586.10 on the NSE as of 1:38 pm IST on February 27, 2026, down ₹ 74.20 or 4.47% so far.

The stock opened at ₹ 1,660.60 and touched a high of ₹ 1,661.00 and a low of ₹ 1,580.50 in trade so far. The previous close stood at ₹ 1,660.30.

Market capitalisation was reported at ₹ 45.20K crore. The price-to-earnings ratio was 25.44. The stock’s 52-week high and low were ₹ 2,004.00 and ₹ 1,291.00 respectively. The declared dividend yield was 1.58 per cent, with a quarterly dividend amount of ₹ 6.27.

Company Background

Tata Communications Limited (NSE: TATACOMM; BSE: 500483) is part of the Tata group and provides digital infrastructure, network services and related solutions to enterprises and carriers.

The present disclosure is available on the company’s investor relations website under regulatory filings.

Conclusion

The dissolution formalises the cessation of BUC Mobile, Inc. as an indirect subsidiary effective 16 February 2026. No cash consideration was received. The quantified contribution of the subsidiary in FY25 has been disclosed in accordance with Regulation 30 and the applicable SEBI circular.

Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/dd9f393c-4451-4853-903c-5223a35d95ef.pdf