Shares of Tata Communications today settled with a gain of over 1 per cent following the board’s approval for demerger of around 773 acres of surplus land through a special purpose vehicle.

On December 13, the board of Tata Communications approved demerger of around 773 acres of surplus land to a separate company, which in turn will be listed subsequently.

Shares of the company today opened on a bullish note at Rs 745 and touched a high of Rs 758, up 9.13 per cent over its previous closing price. At the end of today’s close the stock was quoted at Rs 702, up 1.10 per cent on the BSE.

On the NSE, the stock surged to an intra-day high of Rs 754 and finally settled for the day at Rs 701.45, up 0.73 per cent.

The land will be transferred to an SPV (special purpose vehicle) created for the purpose ‘Hemisphere Properties India Ltd’, which will apply for listing of shares.

“...the board of directors of Tata Communications Limited at it meeting held today...has approved a draft scheme of arrangement and reconstruction between Tata Communications Limited...and Hemisphere Properties India limited... and their respective shareholders,” Tata Communications said in a BSE filing.