Govt sells stake in Tata Communications, OFS fully subscribed

The offer for sale will fetch the government about Rs 5,500 crore.

The government on Tuesday divested its holding in Tata Communications, which was formerly state-owned company VSNL.

Nearly 46 million shares were offered under an offer for sale (OFS). Investors placed bids for 56 million shares, data provided by stock exchanges showed. The floor price for the OFS was fixed at Rs 1,161. Most of the bids came in at Rs 1,184. Shares of Tata Comm fell 6.5 per cent in secondary market trade and finished at Rs 1,213. After the OFS, the government holding in Tata Comm will decline from 26.12 per cent to 10 per cent.

The government’s remaining 10 per cent stake will be acquired by Tata Son’s investment arm Panatone Finvest. The OFS will fetch the government about Rs 5,500 crore, while the 10 per cent stake will fetch another Rs 3,400 crore.