Published: Tue, March 13, 2018
Finance | By Loren Pratt

Tata Sons will raise $1bn from TCS stake sale

Tata Sons will raise $1bn from TCS stake sale

Tata Sons is looking to sell around 2.83 crore shares amounting to about 1.48 per cent stake in TCS and the transaction is likely to be happen this week, the sources added.

On the NSE, shares of the company slipped 5.41 per cent to close at Rs 2,886.80.

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.

Citigroup and Morgan Stanley managed the offering. The price range represents a 4.2 percent to 5.9 percent discount to its last close. They were down 5.1%, headed for the biggest one-day decline in more than three years, at 1:13 Mumbai.

On the BSE, 17.36 lakh shares were traded in the counter so far compared with average daily volumes of 72,000 shares in the past two weeks.

When contacted, Tata Sons declined to comment. The latter had to shell out $1.2 billion to NTT DoCoMo a year ago in order to settle the long-standing dispute with the Japanese telecom giant after it exited their joint venture in 2013. 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. The proceeds from the TCS sale might be used to clear some of this debt.

Other industry experts point out that Tata Sons may choose to use the TCS stake sale proceeds to fund Tata Steel, which is hoping to snap up Bhushan Steel and Bhushan Steel and Power.

The holding company is also seeking a $1.5 billion offshore syndicated loan, as it seeks to pay down expensive debt at its telecommunications unit, people familiar with the matter said last week.

Tata Sons had 73.5% stake in the software company at the end of December 2017.

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