Shares of Nelco hit their 10 percent upper circuit limit of Rs 856.55 on the National Stock Exchange on August 26 after the company announced that it has entered into a pact with Intelsat Commercial to launch in-flight connectivity services in India.
Intelsat’s pact with Nelco will allow the former to launch their in-flight internet services in India, which is seen as a major opportunity for Nelco. Nelco had launched in-flight connectivity services in 2020.
“Through this relationship with Intelsat for further growth of our Aero IFC services in the country in the coming years – and we intend to be a leader in this market in India,” Nelco said in a press statement.
Under the new pact, airline partners of Intelsat will now enjoy end-to-end broadband coverage on domestic and international flights to and from India as well as those flying over the Indian aerospace.
“This is a fast-growing airline market, and there is considerable untapped potential for IFC growth,” Intelsat’s President of Commercial Aviation Jeff Sare said in a statement. Intelsat is the operator of the world’s largest integrated satellite and terrestrial network and provider of in-flight connectivity.
Investors are anticipating major improvement in Nelco’s earnings as in-flight connectivity services launched by the company gain traction in the domestic market. Shares of the company have rallied 80.5 percent in the past one year and are up 18.6 percent in 2022 so far.
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