March 19, 2018

TCS plunges 6% on share sale buzz

13 March 2018, 10:03 | Cesar Cruz

Tata Sons To Sell Tata Consultancy Stake Worth $1.25 Billion To Repay Debt

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 will use the proceeds of the transaction to repay the loans of Tata Teleservices. Tata Sons holds about 74 per cent in TCS.

Tata Sons priced its sale of Tata Consultancy shares at about 2,872 rupees apiece, the bottom of a marketed range, according to the people, who asked not to be identified because the information is private.

Shares in Tata Consultancy Services fell 5.4 percent. Last week, Tata Sons said that it will buy a 7-per cent stake in group company Indian Hotels for over Rs1,000 crore on or after 13 March, which will increase its stake from 30 per cent to 37 per cent in the hospitality chain.

Tata Sons could also fund group companies such as Tata Steel, which is looking to purchase two steel firms - Bhushan Steel and Bhushan Steel and Power - both of which are admitted to the bankruptcy court.

Passenger describes chaos of emergency landing
Local news sources report that most passengers boarded another plane for the trip to Dallas that arrived at around 1 am. A Southwest Airlines plane made an emergency landing in Albuquerque after the cabin reportedly filled with smoke.

Since past year, the conglomerate has been planning to increase its ownership in its largest businesses including Tata Chemicals Ltd. and Tata Steel Ltd. Last year, it boosted its stake in Tata Motors.

Consumer price index (CPI) or retail inflation eased to 4.44 per cent in the month of February 2018, from 5.05 per cent in January 2018, slightly in line with analysts expectations. Citigroup and Morgan Stanley are managing the TCS share sale, touted to be the biggest block trade this year at over 28 million shares.

Tata Consultancy shares were offered at 2,872 rupees to 2,925 rupees each, according to terms for the deal obtained by Bloomberg earlier.

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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