Tata Sons, the holding company of the Rs 49,000-crore Tata group, is planning to transfer its holdings in different information technology companies to Tata Consultancy Services when the division is spun off into a separate company.
The process is expected to be completed over the next few months. Tata Sons obtained shareholder approval for the transfer of TCS into a shell company, Orchid Print, in January.
The holding company will also not buy out the 10 per cent that some of its shareholders hold in Orchid Print. This will result in several Tata Sons shareholders getting the option to exit from TCS once it is listed. The exact identity of these shareholders could not be ascertained.
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The Tatas hold over 34 per cent in Tata Elxsi, most of which is through Tata Sons. Tata Sons also holds over 74 per cent in Tata Infotech, over 68 per cent in CMC, and 50 per cent in another joint venture with Swiss Air Lines. Tata Technologies, which too is expected to be merged into TCS, is a subsidiary of Tata Engineering.
Tata sources said the move was aimed at