Tata Sons intends to sell a 0.65 percent interest in its flagship Tata Consultancy Services (TCS) on Tuesday in the open market. According to the term sheet, the entity that manages the country's most valued company would sell 23.4 million shares at a floor price of Rs 4,001. Tata Sons can raise Rs 9,362 crore ($1.13 billion) at the base price, which is 3.7% lower than TCS' previous closing.
This will be the second mega-block transaction in domestic markets this month. On March 13, British American Tobacco (BAT) sold a 3.5% share in ITC to raise Rs 17,485 crore ($2.1 billion). JP Morgan and Citi are the two investment banks overseeing the stock sale.
TCS shares slid 1.8% on Monday, closing at Rs 4,144, valuing the software exporter at Rs 15 trillion. Tata Sons currently holds a 72.38 percent interest in TCS, valued Rs 10.9 trillion.
In December, Tata Sons raised approximately Rs 12,300 crore by tendering TCS shares in its Rs 17,000-crore repurchase. The buyback price was established at Rs 4,150 per share. Since 2017, Tata Sons has raised approximately Rs 54,000 crore by tendering shares for buyback.
TCS shares have surged over 33% in the last year, slightly surpassing the Nifty50 index, which has increased by 30%.
Tata Sons has recently made headlines when brokerage reports revealed that the holding firm will be required to list by September 2025 to comply with Reserve Bank of India (RBI) regulations.
The central bank classifies Tata Sons, a registered core investment firm, as a "upper-layer" non-banking financial company (NBFC). According to Spark PWM (previously Spark Family Office and Investment Advisors), if Tata Sons gets listed, its market value might range from Rs 7 trillion to Rs 8 trillion.
