TCS plunges 6 per cent on share sale buzz

TCS plunges 6 per cent on share sale buzz

Earlier on Monday, Bloomberg reported that Tata Sons will sell 28.27 million shares or 1.48% stake in TCS at between Rs2,872 and Rs2,925 a share. During the day, it slipped 5.49 per cent to Rs 2,884.10.

Tata Sons will use the proceeds to pay creditors of its wireless division, a person with knowledge of the matter said Monday.

Previous year in October, Tata Group had agreed to sell its loss-making mobile telephony business to Bharti Airtel on "a debt-free cash-free basis". The company plans to sell the shares at between Rs2,872 to Rs2,925 a share, the terms show.

Tata Sons is expected to use these funds for other group activities, including debt reduction goal.

Since a year ago, 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.

Explosion Hits Palestinian Prime Minister's Convoy in Gaza
Neither Hamdallah nor Faraj were among those injured in the incident, and the Prime Minister continued his schedule as planned. The top Palestinian Authority officials made the rare trip from the West Bank for the inauguration of a desalination plant.

Tuesday Morning's Forecast, March 13, 2018
Some spots reported bouts of light snow, but this managed to quickly melt away with temperatures remaining above freezing. Another shot of chilly air drags temperatures back down Friday , with highs only in the upper 30s to near 40 degrees.

Nintendo Switch updates to 5.0 with nothing exciting at all
The Nintendo Switch will automatically download the firmware 5.0.0 firmware while it is connected online. When a bedtime alarm is set, play will be restricted from the set time until 06:00 the following day.

Citigroup and Morgan Stanley are managing the TCS share sale.

Shares of TCS, Asia's largest software developer, closed 5.22% lower on the Bombay Stock Exchange (BSE) on Tuesday.

The holding company is also seeking an offshore syndicated loan, as it seeks to pay down expensive debt at telecommunications unit, people familiar with the matter said last week.

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.

Related Articles