Tata Sons has offered to sell 2.34 crore shares of IT major Tata Consultancy Services Ltd (TCS) at Rs 4,001 per share through block deals to raise $1.1 billion, reported Bloomberg on March 18.
The floor price represents a 3.6 percent discount to the last traded price. On March 18, TCS' shares on BSE closed 1.8 percent lower at Rs 4,144.25 while their intraday high was Rs 4,254.75.
As of December 31, 2023, promoters held a 72.41 percent stake in TCS, of which Tata Sons held 72.38 percent stake, while the rest is held by Tata Investment Corporation. Citigroup and JPMorgan are reportedly the joint bookrunners of the proposed share sale.
2.34 crore shares represent 0.65 percent equity of TCS. At a market capitalisation of Rs 15 lakh crore, TCS is India's second most-valued listed company after Mukesh Ambani-led Reliance Industries Ltd (RIL).
Tata Group stocks have been in focus in March after a note from Spark Capital spoke about a possible listing of Tata Sons by September 2025 as it will complete three years of being notified as an upper-layer NBFC by the Reserve Bank of India.
RBI mandates upper layer NBFCs to list within three years of being notified of the same by the central bank. Tata Sons was notified in September 2022.
Tata Sons controls 29 publicly listed Tata Group companies with a combined market capitalisation of Rs 31.6 lakh crore.
If launched, Tata Sons' IPO was estimated to be the biggest ever, even supassing Life Insurance Corporation of India’s Rs 21,000-crore offer. Spark’s report said Tata Sons could be valued at Rs 7-8 lakh crore through the IPO, based on the current market capitalisation of group companies.
Spark Capital identified Tata Chemicals as the only potential play in the IPO.
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