Tata Sons, the holding company of prestigious conglomerate Tata Group, has reportedly lined up a major transaction worth Rs. 9,400 crore through selling a modest percentage of its shareholding in the IT behemoth Tata Consultancy Services (TCS). As per market exchanges seen by industry insiders, Tata Sons is planning to offload around 2.34 crore shares representing a mere 0.65% stake in TCS via block trades.
Brokered by trusted financial advisors Citigroup and JPMorgan, this stake sale aims to fetch close to Rs. 9,400 crore for Tata Sons after applying a small discount to TCS’ current market price. The shares are being offered to institutional investors at Rs. 4001 apiece, which is a tiny 3.46% lower than Monday’s closing price for TCS stock.
Despite relinquishing a minuscule portion of its large controlling stake, Tata Sons will remain the dominant shareholder in TCS with over 72% holding. This move allows the group holding company to raise significant capital without considerably impacting its leverage over the jewel in Tata’s tech crown. TCS continues to deliver outstanding returns for shareholders as its recent annual profits crossed Rs. 39,000 crore.
