Markets

TCS plunges 6% on share sale buzz

TCS plunges 6% on share sale buzz

In another transaction, around 1.07 crore shares of TCS were offloaded at Rs 2871.19 apiece.

Tata Sons today sold shares valued at almost Rs 9,000 crore in Tata Consultancy Services (TCS) through open market transactions.

The price of the stake sale is likely to be between Rs 2,872 and Rs 2,925, Bloomberg reported. The selling price range is a 4-6 per cent discount to TCS' Monday closing price of Rs3,052 on the BSE.

Citigroup and Morgan Stanley managed the offering. The firm has a market capitalisation of some Rs 5.53 lakh crore. The orders in a block deal are not shown to people who trade from normal trade window. Tata Sons may buy the stakes from other Tata Group affiliates, which would help to reduce cross-shareholdings, according to the person.

Can Sammy Watkins Play to His Potential in Chiefs' Now-Loaded Offense?
Watkins signed a three-year deal worth $48 million ($30 million guaranteed) while Hitchens' deal is worth $9 million per year. So the Rams knew Watkins would be exposed to free agency, and likely lured away with big money based on his potential.

In addition, the holding company is seeking a $1.5 billion offshore syndicated loan, to pay down expensive debt at its telecommunications unit. Tata sold Tata Teleservices' mobile-phone operations to Bharti Airtel past year and pledged to pay the unit's obligations. Tata Sons plans to use the proceeds to repay debt of units Tata Teleservices and Tata Teleservices Maharashtra, one of the people said at the time. The Group is clearly in a hurry to exit its troubled mobile telephony business.

The use of proceeds from the stake sale will be used by Tata Sons to strengthen its solvency position its balance sheet.

Tata Steel has emerged as the highest bidder to buy the two companies, which have total debt of Rs 60,000 crore. TCS is the most-profitable unit within the $100 billion-plus Tata Group, and ranks among the top three most valuable brands in the global IT services sector along with IBM and Accenture.