The share price of Tata Communications jumped nearly 5 percent on Friday on reports that the government expects to complete share sale for the firm this fiscal.

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Sources told CNBC-TV18 that the offer for sale (OFS) by the government is likely to be in February 2021 depending on market conditions and merchant bankers are likely to be in place for the same before February 10. The OFS may garner Rs 7,500 crore for the government.

The stock rose as much as 4.7 percent to its day's high of Rs 1,018.75 per share on the BSE.

The government currently holds about a 26 percent stake in the firm.

In a clarification issued by the government on queries raised by bidders in the pre-bid meeting, the Department of Investment and Public Asset Management (DIPAM) said that the consent of promoter Tata Sons is already in place. It added that the government will look to obtain CCI nod by March 31.

Earlier this month, the firm had posted over a five-fold jump in consolidated net profit at Rs 309.41 crore for the December 2020 quarter. The company had registered a profit of Rs 58.85 crore in the corresponding period of the preceding fiscal.

Its income from operations was almost flat at Rs 4,222.83 crore during the reported quarter from Rs 4,228.27 crore in the year-ago period, it said in a BSE filing. In a statement, Tata Communications said the consolidated PAT (Profit after tax) had grown 428 percent y-o-y (Year-over-year) to Rs 309 crore (USD 42 million).

"We continue to deliver on our goal of profitable growth. Both profitability and cash flow generation have improved significantly in the last few quarters on the back of cost efficiencies and improved business processes. This agility has given us the headroom to compete more effectively in the market and cater to our customer's changing needs. Our focus continues to remain on generating a healthy order book coupled with strong execution to drive our growth," said Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications.