Tata Sons plans to sell TCS shares worth Rs 9,362 crore

Tata Sons, the holding company of Tata Group, is set to divest shares in its flagship IT services firm, Tata Consultancy Services (TCS), to the tune of up to Rs 9,362 crore as per a term sheet seen by Reuters.

The stake sale entails Tata Sons offering approximately 2.34 crore shares of TCS, amounting to a 0.65 per cent stake in the leading IT services provider. As of December 31, Tata Sons boasted a substantial 72.4 per cent ownership stake in TCS, according to exchange data.

The shares are slated to be traded at a floor price of Rs 4,001 per share, marking a 3.7 per cent discount from the previous closing price of Rs 4,152.5 per share. The discount is intended to stimulate investor interest and enhance the attractiveness of the offering.

The stake sale is being facilitated by J.P. Morgan and Citigroup, who will serve as joint bookrunners for the transaction.

Neither Tata Sons nor TCS immediately responded to Reuters' requests for comment, underscoring the confidential nature of the transaction.

TCS shares witnessed 1.6 per cent decline in value on Monday, preceding the announcement, amid a broader downturn in the IT sector. The development comes at a pivotal time, reflecting Tata Sons' strategic manoeuvring to optimise its investment portfolio and possibly leverage capital for other ventures.

(With Reuters inputs)