TCS Stock Down 2% Following 2.2 Crore Shares Transacted for Rs 8,900 Crore; Details
TCS fell 2% to Rs 4,055 in response to rumours that Tata Sons will sell 23.4 million shares, or 0.65% of the company, in a block offer today at a floor price of Rs 4,001 per share.
At an average price of Rs 4,043 per share, shares were exchanged, bringing the total transaction value to Rs 8,894 crore. The transaction’s offer price was set at Rs 4,001 per share, representing a 3.45% reduction to Monday’s closing price.
The transaction’s buyers were not immediately identified.
Through the block agreement, TCS’s promoter, Tata Sons, intended to sell 0.64 percent of the company’s shares to the massive technology company.
According to the ownership pattern from December, the promoters owned 72.41% of TCS, of which Tata Sons owned 72.38% and Tata Investment Corporation owned the remaining portion.
Tata Sons may use the proceeds from this TCS block to reduce group debt.
Throughout the month of March, attention has been focused on Tata Group equities after a note from Spark Capital announcing that Tata Sons will be listed by September 2025, marking the completion of three years since the Reserve Bank of India informed it that it was an upper-layer NBFC.
According to an RBI rule, an upper-layer NBFC must list when the central bank notifies it of the need, and this time frame is three years. September 2022 saw notification to Tata Sons.
CNBC-TV18 has learned from sources that Tata Sons’ IPO is unlikely to happen anytime soon and that the company is exploring a number of options to get around RBI regulations. Reducing debt and spinning off companies like Tata Capital was one of them.
Sharekhan has issued a “buy” call on the shares, with a Rs 4,750 target price. The optimistic outlook stems from TCS’s strong subject knowledge and global reach.
According to the brokerage, TCS is well-positioned to take advantage of possibilities in cost optimization, digital transformation, and newer technology services because of its capacity for cross-selling.
