Moneycontrol
Last Updated : Mar 13, 2018 04:32 PM IST | Source: Moneycontrol.com

TCS shares slip 5% after Tata Sons offloads stake via block deal

About 3.1 crore shares worth Rs 8,992 crore traded on NSE & BSE at an average price of Rs 2,892 through a block deal.

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Tata Consultancy Services share price posted the biggest single-day fall in percentage terms in over last three years after a block deal in opening trade on Tuesday.

The stock was the biggest loser among Nifty50 stocks, falling 5.42 percent to close at Rs 2,886.80 on the NSE after the promoter Tata Sons offloaded some stake in the company.

Reports suggested that the promoter sold more than 1.5 percent stake worth close to Rs 10,000 crore at around 5 percent discount to Monday's closing price through block deals in opening trade.

Tata Sons is expected to use these funds for other group activities, including debt reduction purpose.

Analysts feel the stake sale in TCS by the promoter will increase its free float, which will increase its weightage.

Tata Sons, the promoter of major operating companies of the Tata group, was planning to raise around Rs 8,200 crore by selling stake in the IT major, the PTI said quoting investment banking sources.

Tata Sons was looking to sell around 2.83 crore shares amounting to about 1.48 percent stake in TCS, the sources added.

After the proposed share sale, Tata Sons' holding in Tata Consultancy Services (TCS) would come down to around 72 percent from 73.52 percent as on December, 2017.

The sources said Tata Sons intends to use the proceeds from the share sale to reduce debt in the group's telecom arm Tata Teleservices which has debt of around Rs 40,000 crore.

Last year in October, Tata Group had agreed to sell its loss-making mobile telephony business to Bharti Airtel on "a debt-free cash-free basis".
First Published on Mar 13, 2018 10:06 am
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