Tata Sons on Tuesday sold shares valued at almost Rs 9,000 crore in TCS through open market transactions.
Data available from the NSE showed that the holding firm of the Tata group sold 2.06 crore shares of the country's largest IT services firm at a price of Rs 2,876.46 per share. The stock slipped as much as 5.46 per cent to Rs 2885.20 on the BSE in an otherwise strong market. During the day, it dove 5.49% to Rs 2,884.10.
Last week, Tata Sons said it will invest at least Rs 1,077 crore to hike stake in the BSE-listed hospitality arm Indian Hotels Co Ltd. As part of restructuring its investment portfolio, Tata Sons will acquire additional shares in IHCL anytime on or after March 13, 2018. Tata sold Tata Teleservices Ltd.'s mobile-phone operations to Bharti Airtel Ltd. past year and pledged to pay the unit's obligations.
Citigroup and Morgan Stanley managed the offering. The plan is to reduce the considerable debt obligations in the wireless telecom units - Tata Teleservices and Tata Teleservices (Maharashtra) - and to spruce up equity interests in key Tata group companies.
Other industry experts point out that Tata Sons may choose to use the TCS stake sale proceeds to fund Tata Steel, which is hoping to snap up Bhushan Steel and Bhushan Steel and Power.