TCS Block Deal: Holding Company Tata Sons To Sell 2.34 Crore TCS Shares Worth Rs 9,300 Crore
TCS Block Deal: Tata Sons, the promoter of India’s largest software services exporter, Tata Consultancy Services (TCS), has announced plans to sell 2.34 crore shares of TCS in block deals, fetching approximately Rs 9,300 crore, according to reports cited by ET. The offer comes at a price of Rs 4,001 per share, representing a discount of 3.6 per cent to Monday’s closing price.
Tata Sons currently holds a 72.38 per cent stake in TCS, which has seen its shares surge by 30 per cent over the past year. Despite hitting a new peak of Rs 4,254.45 during the trading session, TCS shares concluded 1.7 per cent lower at Rs 4,144.75 on the Bombay Stock Exchange (BSE) on Monday.
With a market capitalization of Rs 15 lakh crore, TCS ranks as India’s second most valuable listed company, trailing only behind Reliance Industries (RIL).
According to reports from The Times of India (ToI), Tata Sons is actively exploring various avenues to reorganize its debt structure, including the potential repayment of borrowings or transferring its holdings in Tata Capital to another entity. Such actions could result in Tata Sons being deregistered as a core investment company (CIC) and an upper-layer NBFC. The RBI has set a deadline of September 2025 for all upper-layer NBFCs, including Tata Sons, to comply with listing requirements.
The move by Tata Sons to offload TCS shares is seen as a strategic financial decision, potentially aimed at restructuring its balance sheet. Speculation has arisen that the move could be an alternative to a Tata Sons initial public offering (IPO), a possibility constrained by Reserve Bank of India (RBI) regulations governing the listing of ‘upper layer’ non-banking finance companies (NBFCs) on stock exchanges.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Today Technology Market ResearchDigital suggests its readers/audience to consult their financial advisors before making any money related decisions.)
