This is the biggest single-day fall for the stock since March 2020, when it had declined by a similar quantum.
The stock slipped below the ₹1,000 mark after three trading sessions on Tuesday. It had hit a 52-week high of ₹1,120 apiece on Monday, August 18 and is down 15.1% from those levels.
However, the stock is up 90.2% from its 52-week low of ₹500.1, which it had hit on March 30, 2026.
On Monday, Nelco said it entered agreements with Lunar Holdco Inc to invest $20 million via subscription to compulsorily convertible debentures (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 for in cash via wire transfer.
The investment does not confer control over Lunar. The shareholding percentage is not determinable at present and will depend on the occurrence of conversion events and other terms specified in the CCD documentation.
Nelco said the investment is strategic and intends to establish a long-term partnership with Lunar for the distribution, provision and commercialization of satellite-based D2D, IoT as well as related communication services in India and other nations.
NELCO currently has a market capitalization of ₹2,160 crore. Tata Power is classified as a promoter for NELCO, owning a 50% stake at the end of the June quarter.
Shares of NELCO are trading 12.3% lower on Tuesday at ₹948.1. The stock is still up 31% so far this year.
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