Nelco invested $20 million in Lunar Holdco, the parent of Elveo Mobile, to bring direct-to-device satellite connectivity to India by 2028.

The deal was completed on 17 August and gives Nelco a minority but strategic stake in the business, which operates under the brand name Elveo Mobile.

Rather than buying shares outright, Nelco has subscribed to compulsorily convertible debentures. These instruments carry a 7% annual return and will convert into equity later, based on specific triggers laid out in the agreement.

Nelco won’t gain control of Lunar through this, and satellite giant SES will continue to hold the majority stake.

It builds satellite networks that let phones and IoT devices connect directly to satellites, skipping the need for ground towers. This is called direct-to-device, or D2D, technology.

Lunar itself is a fairly new company, formed earlier this year through the merger of Lynk Global and Omnispace, and it hasn’t started earning revenue yet.

For Nelco, the plan is to bring this technology to India and neighbouring countries like Bangladesh and Sri Lanka.

The company’s MD and CEO, PJ Nath, said Nelco wants to focus on business customers such as automotive, energy and government clients, rather than individual consumers, and will rely on telecom partners for that side of things.

He expects trials to start by the end of 2027, with commercial services following by early 2028, though the exact timing also depends on regulatory approval for D2D services in India.

Lunar has not yet begun any commercial operations in the country, and Nelco will need the usual telecom and satellite licences before services can go live here.

As of 13:50 pm on 19 August, Nelco shares were trading at Rs 912.60 on the NSE, down 3.82% for the day.

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