Tata Sons, which holds about 74% in TCS, will sell the software biggie's shares at a price between Rs 2,872 and Rs 2,925 apiece. The selling price range is a 4-6 per cent discount to TCS' Monday closing price of Rs3,052 on the BSE. The orders in a block deal are not shown to people who trade from normal trade window. Tata Sons also has to repay debt of around Rs 35,000 crore owed by Tata Teleservices, which is now expected to merge with Airtel, industry sources said. The latter had to shell out $1.2 billion to NTT DoCoMo past year in order to settle the long-standing dispute with the Japanese telecom giant after it exited their joint venture in 2013. The proceeds from the TCS sale might be used to clear some of this debt. Tata Sons has mandated lenders for a $1.5 billion six-year loan.
Tata Sons plans to use the money it raises to pay lenders to the company's subsidiary Tata Teleservices and raise stake in some other units, unidentified people told the news outlet. The Group is clearly in a hurry to exit its troubled mobile telephony business.
Tata Sons will use the proceeds to pay creditors of its wireless division, a person with knowledge of the matter said Monday.
Tata Steel has emerged as the highest bidder to buy the two companies, which have total debt of Rs 60,000 crore.
After the proposed share sale, Tata Sons holding in Tata Consultancy Services (TCS) will come down to around 72 per cent from 73.52 per cent as on December, 2017.