TCS shares fall over 5%; m-cap dips by Rs 30513 cr

Tata Sons Ltd India’s biggest business group plans to sell $1.25 billion of its stake in Tata Consultancy Services, according to terms of the transaction

Tata Sons, the promoter of major operating companies of the Tata group, was planning to raise around Rs 8,200 crore by selling stake in the IT major, the PTI said quoting investment banking sources.

It is planning to sell the TCS shares for 2,872 rupees to 2,925 rupees each, CNBC TV18 reported on Monday.

Past year in October, Tata Group had agreed to sell its loss-making mobile telephony business to Bharti Airtel on "a debt-free cash-free basis". Tata Sons may buy the stakes from other Tata Group affiliates, which would help to reduce cross-shareholdings, according to the person.

Tata Sons will use the proceeds to pay creditors of its wireless division, according to a person with knowledge of the matter. While previous year Tata Songs boosted its stake in Tata Motors Ltd, the owner of Jaguar Land Rover, it is also planning to buy 6.6 percent additional stakes in Indian Hotels Co. that was held by Tata Trusts.

More news: Goldman Sachs: Trump's tariffs will benefit Russian Federation and China

A private security guard stands at the exit gate of the headquarters of Tata Consultancy Services (TCS) in Mumbai, India October 13, 2016.

Shares of TCS, Asia's largest software developer, closed 5.22% lower on the Bombay Stock Exchange (BSE) on Tuesday.

Citigroup and Morgan Stanley managed the offering. Tata Sons plans to use the proceeds to repay debt of units Tata Teleservices and Tata Teleservices Maharashtra, a person said then.

On NSE, shares of the company dived 5.90 per cent to Rs 2,872. During the day, it slipped 5.49 per cent to Rs 2,884.10.

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