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

Tata Sons To Offload TCS shares Worth $1.25 Billion

Mumbai: Tata Sons is set to sell on Tuesday a roughly 1.5 per cent stake in its flagship Tata Consultancy Services for about $1.25 billion. Company has Deloitte Haskins & Sells LLP as its auditoRs As on 31-12-2017, the company has a total of 1,954,927,727 shares outstanding.

Tata Sons intends to use the proceeds from the share sale to reduce debt in the group's telecom arm Tata Teleservices which has debt of around Rs 40,000 crore, the sources told PTI.

Shares in Tata Consultancy Services fell 5.4 percent. During the day, it dove 5.49 per cent to Rs 2,884.10.

According to Bloomberg, Tata Sons was offering 28.27 million shares of Asia's largest software developer after the market closed on Monday, planning to sell the shares between Rs 2,872 to Rs 2,925 a share. A part of the proceeds will be used to raise its holdings in some listed units, the report added. An official at Tata Sons declined to comment on the final pricing. Tata Sons is buying an additional 6.6 percent stake in Indian Hotels Co. that was held by Tata Trusts, according to a stock exchange filing this month.

In addition, the holding company is seeking a $1.5 billion offshore syndicated loan, to pay down expensive debt at its telecommunications unit.

Tata Sons plans to use the money it raises to pay lenders to the company's subsidiary Tata Teleservices and raise stake in some other units, unidentified people told the news outlet.

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