Published: Tue, March 13, 2018
Finance | By Claude Patterson

Tata Sons selling US$1.25 billion worth of TCS shares

Tata Sons selling US$1.25 billion worth of TCS shares

India's Tata Sons [TATAS.UL] is set to sell on Tuesday a roughly 1.5 percent stake in its flagship Tata Consultancy Services (TCS.NS) for about $1.25 billion.

It is learnt that Tata Sons will be selling close to 2.83 crore shares, which translates to about 1.48 per cent of the software services firm.

The stock declined 5.46 % to ₹2,885.20 on BSE.

According to Bloomberg, Tata Sons was offering 28.27 million shares of Asia's largest software developer after the market closed on Monday, planning to sell the shares between Rs 2,872 to Rs 2,925 a share.

The proceeds of the share sales will reportedly be used by Tata Sons to pay creditors of its wireless division.

The conglomerate has been planning to raise its ownership over time in five of its largest businesses including Tata Chemicals Ltd. and Tata Steel Ltd., Bloomberg News reported previous year.

This is a discount of around 6 per cent to the closing price of Rs 3051.85 of the TCS scrip on the Bombay Stock Exchange on Monday. Tata Sons plans to use the proceeds to repay debt of units Tata Teleservices and Tata Teleservices Maharashtra, one of the people said at the time. After the block deal, Tata Sons will hold about 73% in TCS, which generated $18 billion in revenues in fiscal 2017.

Citigroup and Morgan Stanley are managing the TCS share sale.

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