Economy

Tata Sons selling $1.25 billion worth of TCS shares

Tata Sons selling $1.25 billion worth of TCS shares

According to media reports, Tata Sons, which held 73.52% stake in TCS (as on 31 December 2017), will sell around 2.82 crore shares of the IT major at between Rs 2,872 to Rs 2,925 a share.

The transaction is likely to be conducted through block deals on stock exchanges on Tuesday.

On NSE, shares of the company dived 5.90 % to ₹ 2,872.

Tata Sons to offload $1bn worth TCS shares.

Some reports said Tata Sons may already have sold stake after markets opened on Tuesday, while others suggested that the sale took place on Monday evening.

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Martin Hughes decreased its stake in Bank Of America ( BAC ) by 34.62% based on its latest 2017Q3 regulatory filing with the SEC. Piper Jaffray maintained the stock with "Hold" rating in Thursday, January 18 report. (NYSE:T) rating on Monday, December 12.

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

Citigroup and Morgan Stanley are managing the TCS share sale. The selling price range is a 4-6% discount to TCS' Monday closing price of Rs 3,052 on the BSE.

In addition, the holding company is seeking a $1.5 billion offshore syndicated loan, to pay down expensive debt at its telecommunications unit.

Some part of the proceeds will also be used to reduce the cross-holdings of different companies in the Tata group.

Tata Sons will be acquiring the shares from Sir Dorabji Tata Trust, Lady Tata Memorial Trust and Sir Ratan Tata Trust in IHCL. While previous year Tata Songs boosted its stake in Tata Motors Ltd, the owner of Jaguar Land Rover, it is also planning to buy 6.6 percent additional stakes in Indian Hotels Co. that was held by Tata Trusts.