Business/Economy

Tata Sons said to raise $1bn from TCS stake sale

Tata Sons said to raise $1bn from TCS stake sale

India’s biggest business group, Tata Sons Ltd., will sell a 1.5 % stake in TCS, worth nearly $1.3 billion (Rs 8,500 crore), through the stock exchanges between the period of March 13 and March 15.In order to strengthen its balance sheet, the company will use the money raised from the stake sale.

Shares of Tata Consultancy, which holds the position Asia’s largest software developer, fell as much as 5.9%. They were declined by 5.1% headed for the biggest one-day down in more than three years. Tata Sons, who has the share of about 74% in TCS, will sell the software biggie’s shares at a price between Rs 2,872 and Rs 2,925 apiece.

The Indian multinational conglomerate holding company will use the proceeds to spend creditors of its wireless division, a person with matter knowledge said. Last year Tata sold Tata Teleservices Ltd’s mobile-phone operations to Bharti Airtel Ltd and pledged to pay the unit’s obligation.    

TCS is one of the most renowned companies in India. In the last few months, the number one and number two slots in terms of market capitalization has been shifting between TCS and RIL.