Under 100 Words: A Compact Summary
Tata Sons plans to sell a 0.65% stake in TCS through an open market sale, aiming to raise Rs 9,362 crore. This marks the second significant block deal in March. Shares of TCS fell 1.8% on Monday, while speculation suggests Tata Sons may need to list by 2025 (Tata Sons Set to Sell TCS Shares).
- Tata Sons is set to divest a 0.65 percent stake in its flagship company, Tata Consultancy Services (TCS), on Tuesday through an open market sale.
- According to the terms outlined, the conglomerate will sell 23.4 million TCS shares at a minimum price of Rs 4,001 per share. This move, at the specified base price, is expected to raise Rs 9,362 crore ($1.13 billion) for Tata Sons, which represents a 3.7 percent discount from TCS’ last closing price (Tata Sons Set to Sell TCS Shares).
- This transaction marks the second significant block deal in the Indian markets this month. On March 13, British American Tobacco (BAT) divested a 3.5 percent stake in ITC, raising Rs 17,485 crore ($2.1 billion).
- The share sale is being managed by two investment banks: JP Morgan and Citi (Tata Sons Set to Sell TCS Shares).
- On Monday, shares of TCS experienced a 1.8 percent decline, closing at Rs 4,144. This valued the software exporter at Rs 15 trillion.
- Presently, Tata Sons holds a 72.38 percent stake in TCS, valued at Rs 10.9 trillion. In December, Tata Sons generated nearly Rs 12,300 crore through the tendering of TCS shares in its Rs 17,000-crore buyback program, with a buyback price set at Rs 4,150 per share.
- Since 2017, Tata Sons has amassed approximately Rs 54,000 crore through share tendering in buybacks.
- Over the past year, shares of TCS have surged by almost 33 percent, slightly outpacing the Nifty50 index, which rose by 30 percent (Tata Sons Set to Sell TCS Shares).
- Recently, Tata Sons has been in the spotlight due to brokerage reports suggesting that the holding company will need to list by September 2025 to adhere to Reserve Bank of India (RBI) requirements.
- Tata Sons registered as a core investment company, is categorized as an “upper-layer” non-banking financial company (NBFC) by the central bank (Tata Sons Set to Sell TCS Shares).
- According to a report by Spark PWM (formerly Spark Family Office and Investment Advisors), if listed, Tata Sons could attain a market value ranging between Rs 7 trillion and Rs 8 trillion.
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