Mumbai, Aug. 18 -- The investment was made through compulsorily convertible debentures (CCDs), carrying a 7% annual compounded return. Lunar is a US-based, pre-revenue satellite communications company developing a next-generation Non-Geostationary Satellite Orbit (NGSO) network for Direct-to-Device (D2D), Internet of Things (IoT) and mobile satellite connectivity.

The investment appeared to weigh on sentiment as Nelco is committing $20 million to a pre-revenue company, while its eventual equity stake in Lunar is not presently determinable. The company said the investment does not confer control over Lunar.

Nelco said the strategic investment is aimed at establishing a long-term partnership with Lunar for the provision, distribution and ...