TCS Block Deal: Promoter Tata Sons to sell 0.64% equity on Tuesday

Tata Consultancy Services (TCS) Ltd., the technology giant of the Tata Group will see promoter entity Tata Sons paring stake via block deals on Tuesday.

Tata Sons plans to sell 2.3 crore shares in TCS through block deals, as per the documents accessed by CNBC-TV18. The total number of shares on offer amount to 0.64% of TCS' total outstanding equity.

The offer price for the block deal is ₹4,001 per share, which is a 3.45% discount compared to Monday's closing price for TCS.

At the offer price, the total size of the block deal comes up to over $1 billion or ₹9,202 crore.

Based on the December quarter shareholding pattern, promoters held a 72.41% stake in TCS, of which Tata Sons held 72.38% stake, while the rest is held by Tata Investment Corporation.

Tata Group stocks have been in focus through the month of March after a note from Spark Capital spoke about an imminent listing of Tata Sons by September 2025 as it will complete three years of being notified as an upper-layer NBFC by the Reserve Bank of India.

An RBI mandate states that an upper layer NBFC will have to list within three years of being notified of the same by the central bank. Tata Sons was notified in September 2022.

However, sources told CNBC-TV18 that the listing of Tata Sons is unlikely in the near future and that the group is considering various avenues to navigate the RBI norms. One of those was to cut down on debt and hive off entities like Tata Capital.

Proceeds from this TCS block may be used by Tata Sons to pare down debt at the group level.

Shares of TCS witnessed a sharp sell-off from the day's high towards the close of Monday's trading session. The stock eventually ended 1.78% lower at ₹4,144. The stock has risen 31% over the last 12 months.