In the bargain, the share price of the fastest growing IT services brand in the world - according to leading brand valuation firm, Brand Finance - cracked over 5% in the morning trade.
Diversified business group Tata's holding company Tata Sons will sell 1.5 per cent stake in TCS for an amount of almost Dollars 1.3 billion (Rs 8,500 crore). Tata Sons' move to sell over 28 million shares of TCS comes nearly 10 months after it received Rs 11,722 crore by participating in the software major's share buyback programme.
In terms of equity volume, 21.98 lakh shares of the company were traded on BSE and over 4 crore shares changed hands on NSE during the day. Tata Sons, which held 73.52% stake in TCS (as on 31 December 2017), will sell around 2.82 crore shares of the IT major at between Rs 2,872 to Rs 2,925 a share.
The proceeds of the share sales will reportedly be used by Tata Sons to pay creditors of its wireless division. The latter had to shell out $1.2 billion to NTT DoCoMo previous year in order to settle the long-standing dispute with the Japanese telecom giant after it exited their joint venture in 2013. The $1.5 billion six-year loan is set to be the first offshore syndicated facility taken out by Tata Sons since 2007.
Shares of India's largest exporter, Tata Consultancy Services (TCS) fell almost 6 per cent in morning deals today.
TCS, the top Indian software services exporter, is the second-most valuable company in the country with a market capitalization of close to $90 billion.