Tata Sons, the holding company of salt-to-software Tata Group, will sell $1.25 billion worth of Tata Consultancy Services (TCS) shares in block deals, television news reports said citing unidentified sources. Tata Sons will sell TCS shares at Rs 2,872–2,925 per share, at a discount of 4.2%-5.9% from Monday’s closing price of Rs 3,052.15 per share.
Last June, Tata Sons sold its shares worth Rs 10,278 crore in TCS in a mega Rs 16,000 crore buyback programme — the largest in India to date. The 13-day buyback comprised 2.85% of the company’s paid-up capital.
TCS is among most-profitable businesses of the Tata Group. The IT giant, in the past few months, not only topped Rs 6 trillion market valuation several times but also surpassed Mukesh Ambani’s Reliance Industries briefly.
According to PTI, the Government of Singapore got over Rs 335 crore, Copthall Mauritius Investments, about Rs 187 crore, and EuroPacific Growth Fund received over Rs 161 crore from the buyback programme last year. Last year, Indian IT companies were under pressure to release returns excess cash either through dividend or buybacks. Besides TCS, its rival companies Wipro and Infosys also announced buybacks last year.