Shares of Tata Communications touched a day’s high of Rs 2,002.20 on 30 June, after it unveiled a $152 million subsea cable plan.

Tata Communications will spend $63 million on the MIST cable system connecting Mumbai and Singapore during FY27, and another $89 million on a new cable called Project CS, which will link Chennai and Singapore between FY27 and FY31.

Both projects will be funded entirely through internal accruals, with no fresh borrowing involved. Once ready, the MIST system will add about 20 Tbps of capacity, while Project CS will bring in a much larger 78 Tbps.

The Chennai-Singapore cable is expected to be ready for service by the fourth quarter of 2029, so this is a long term infrastructure bet rather than a quick payoff.

The company currently runs around 270 Tbps of subsea network capacity globally, of which close to 172 Tbps is already lit and in use.

These new cables will connect into its existing terrestrial fibre network, which already links to more than 100 data centres across India.

Genius Wong, the company’s chief technology officer, said the investments are meant to keep pace with rising demand for AI and cloud linked digital services, and called the India-Singapore route one of the busiest digital corridors in the world.

This isn’t Tata Communications’ first move in this space either. Last year, the company had integrated another undersea cable, the TGN IA2, to improve speed and reliability across its Asian network.

As of 15:06 pm on 30 June, shares of the telecom infrastructure major were trading at Rs 1,974.40 on the NSE, down 0.95% for the day, even after the early gains.

The stock remains within its 52 week range of Rs 1,322.50 to Rs 2,110, and has gained close to 17% over the past year.

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