Published: Fri, March 16, 2018
Economy | By Melissa Porter

Tata Sons raises Rs 8989.84 crore in upsized TCS offering

Tata Sons raises Rs 8989.84 crore in upsized TCS offering

Almost 2.06 crore shares were offloaded at a price of Rs 2,876.46 a piece. On the BSE, the scrip lost 5.22 per cent, or Rs 159.40, to close at Rs 2,892.45.

Tata Sons today sold shares valued at almost Rs 9,000 crore in Tata Consultancy Services (TCS) through open market transactions.

Citigroup and Morgan Stanley are managing the TCS share sale.

On the BSE, 64,000 shares were traded in the counter so far compared with average daily volumes of 3.11 lakh shares in the past two weeks.

Tata Sons, which holds about 74% in TCS, will sell the software biggie's shares at a price between Rs 2,872 and Rs 2,925 apiece.

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 past year.

In 2017, Tata sold Tata Teleservices Ltd's mobile phone operations to the BSE-listed Bharti Airtel Ltd, and had promised to service the unit's debt. 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 proposed share sale, Tata Sons holding in Tata Consultancy Services (TCS) will come down to around 72 per cent from 73.52 per cent as on December, 2017. The $1.5 billion six-year loan is set to be the first offshore syndicated facility taken out by Tata Sons since 2007. Tata Steel is reportedly the highest bidder for both bankrupt companies with a total debt of Rs 60,000 crore. TCS is the most-profitable unit within the $100 billion-plus Tata Group, and ranks among the top three most valuable brands in the global IT services sector along with IBM and Accenture.

Like this: