The transaction was completed on August 17 following the execution of transaction documents and subscription by Nelco to the CCDs. The CCDs carry a 7% annual compounded return and are convertible into equity shares of Lunar in accordance with their terms. The consideration was paid in cash through wire transfer.
The investment does not confer control over Lunar. The percentage of shareholding is not presently determinable and will depend on the occurrence of conversion events and other terms specified in the CCD documentation.
Why is Nelco investing in Lunar?
Nelco said the investment is strategic in nature and is intended to establish a long-term partnership with Lunar for the provision, distribution and commercialisation of satellite-based D2D, IoT and related communication services in India and other countries.
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The investment is intended to provide Nelco strategic access to emerging satellite connectivity solutions and support growth opportunities in the satellite ecosystem.
Lunar has not yet commenced commercial operations in India. The commencement of services in India will be subject to applicable approvals, licences and authorisations under telecommunications, satellite communications and other applicable laws.
The investment through subscription to CCDs falls under the automatic route and is subject to applicable regulatory filings and compliances.
Who is Lunar Holdco?
Lunar Holdco, doing business as Elveo Mobile, is a Delaware, United States-incorporated satellite communications company focused on developing a next-generation global NGSO satellite network designed to support D2D, IoT and mobile satellite connectivity services.
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The company is backed by strategic investors, including SES, described in the filing as one of the world’s leading satellite communications operators.
Lunar Holdco was formed on January 27, 2026, as part of the merger of legacy companies Lynk Global and Omnispace. It is a pre-revenue company until the full deployment of its satellite constellation.
Through its subsidiaries, Lunar Holdco has market access in countries across Latin America, Africa and Asia, and has a presence in the United States and Europe.
The transaction does not constitute a related-party transaction, and the promoter, promoter group and group companies of Nelco have no interest in Lunar.
Shares of Nelco Ltd ended at ₹1,081.60, up by ₹55.15, or 5.37%, on the BSE.
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