TCS plunges 6% on share sale buzz

Tata Consultancy shares were offered at 2,872 rupees to 2,925 rupees each according to terms for the deal obtained by Bloomberg earlier

TCS plunges 6% on share sale buzz

Diversified business group Tata's holding company Tata Sons will sell 1.5 per cent stake in TCS for an amount of almost Dollars 1.3 billion (Rs 8,500 crore).

Shares of Tata Consultancy fell as much as 5.9 percent in Tuesday trading. The stock had hit a high of Rs 2,929 and a low of Rs 2,885.20 so far during the day.

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.

In October a year ago, Bharti Airtel entered into an agreement with the Tata group to acquire its consumer mobile business on a "debt-free and cash-free" basis.

More news: Five things we learned from Paris-Nice

Since a year ago, the conglomerate has been planning to increase its ownership in its largest businesses including Tata Chemicals Ltd. and Tata Steel Ltd. The selling price range is a 4-6% discount to TCS' Monday closing price of Rs 3,052 on the BSE.

Citigroup and Morgan Stanley are managing the TCS share sale.

Tata Sons owned 73.5 percent of TCS as of end-December. Tata Sons had also raised $1.5 billion through the external commercial borrowing route, part of which was used to repay the loans.

Tata Sons plans to use the money it raises to pay lenders to the company's subsidiary Tata Teleservices and raise stake in some other units, unidentified people told the news outlet.

Latest News