New Delhi:
Diversified business group Tata's holding company Tata Sons will sell 1.5 per cent stake in TCS for an amount of nearly USD 1.3 billion (Rs 8,500 crore). The stake sell shall take place through the stock exchanges between March 13 and March 15.
The use of proceeds from the stake sale will be used by Tata Sons to strengthen its solvency position its balance sheet. The plan is to reduce the considerable debt obligations in the wireless telecom units — Tata Teleservices and Tata Teleservices (Maharashtra) — and to spruce up equity interests in key Tata group companies.
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 selling price range is a 4-6% discount to TCS’ Monday closing price of Rs 3,052 on the BSE.
Tata Group’s telecom business has a debt of over Rs 40,000 crore even as the sale of the consumer wireless unit to Bharti Airtel awaits regulatory approvals. Tata Sons announced the sale of the consumer mobile services business to Airtel in October 2017 and had agreed to take care of the unit’s debt obligations.
Last week, Tata Sons said that it will buy a 7% stake in group company Indian Hotels for over Rs 1,000 crore on or after March 13, which will increase its stake from 30% to 37% in the hospitality chain.
