Tata Consultancy Services (TCS) Ltd., on Tuesday, witnessed substantial activity as 2.2 crore shares, representing 0.6% of the total equity, changed hands in several large trades.
These exchanges occurred at an average price of ₹4,043 per share, totalling a transaction value of ₹8,894 crore. The offer price for the transaction was set at ₹4,001 per share, marking a 3.45% discount from Monday's closing price.
While the identity of the buyers remains undisclosed, Tata Sons, the promoter entity of TCS, had intended to divest a 0.64% equity stake in the technology giant through this block deal. As per the December shareholding pattern, promoters collectively held a 72.41% stake in TCS, with Tata Sons holding 72.38%, while the remainder was held by Tata Investment Corporation.
Proceeds from this TCS block may be used by Tata Sons to pare down debt at the group level.
Notably, Tata Group stocks have been in focus throughout March, following speculation from Spark Capital regarding the prospective listing of Tata Sons by September 2025. This anticipation stems from a Reserve Bank of India mandate, requiring upper-layer NBFCs, like Tata Sons, to list within three years of notification by the central bank. Tata Sons received such notification 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.
Shares of TCS have opened 3.1% lower at ₹4,026.20.
(Edited by : Akanksha Upadhyay)
First Published: Mar 19, 2024 9:19 AM IST
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