TCS shares fall over 5%; m-cap dips by Rs 30513 cr

Andrew Cummings
March 14, 2018

Mumbai: Tata Sons Ltd on Tuesday sold shares worth almost Rs9,000 crore in IT major Tata Consultancy Services Ltd, according to NSE data. Citigroup Inc. and Morgan Stanley are the bankers to the sale.

In another transaction, around 1.07 crore shares of TCS were offloaded at Rs 2871.19 apiece.

In terms of equity volume, 21.98 lakh shares of the company were traded on BSE and over 4 crore shares changed hands on NSE during the day. Almost 2.06 crore shares were offloaded at a price of Rs 2,876.46 a piece. At these prices, the total value of shares offloaded by Tata Sons is about Rs 8,989.84 crore.

Tata Sons is reportedly planning to use the proceeds to pay debts of units Tata Teleservices and Tata Teleservices Maharashtra. The latter had to shell out $1.2 billion to NTT DoCoMo previous year in order to settle the long-standing dispute with the Japanese telecom giant after it exited their joint venture in 2013. Tata sold Tata Teleservices Ltd.'s mobile-phone operations to Bharti Airtel Ltd. past year and pledged to pay the unit's obligations. In 2017, Tatas had announced that Tata Teleservices will merge with Bharti Airtel on a no-debt, no-cash basis. Post the share sale, Tata Sons's holding in the IT company would drop to around 72%. Tata Sons has mandated lenders for a $1.5 billion six-year loan.

DNA Money had, on December 14, 2016, reported the possibility of Tata Sons raising funds by selling TCS shares for funding a stake hike in various listed group companies amid a raging corporate war with former chairman and director Cyrus P Mistry. 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.

Other reports by iNewsToday