Tata Sons sells 1.5% stake in TCS; stock falls 6%

The stock dipped 6% to Rs 2,872 on the National Stock Exchange after the promoter Tata Sons sold around 1.5% stake in information technology (IT) major through block deals

Tata Consultancy Services (TCS) dipped 6% to Rs 2,872 on the National Stock Exchange (NSE) after the promoter Tata Sons sold around 1.5% stake in information technology (IT) major through block deals.

Till 09:27 am; a combined 34.74 million equity shares representing 1.8% holding of TCS have changed hands on the NSE and BSE. The counter recorded a combined turnover of Rs 100-billion so far, the exchanges data shows.

As of December 31, 2017, Tata Sons held 73.52% stake in TCS, the shareholding pattern data shows.

Tata Sons is selling TCS shares in a price range of Rs 2,872 to Rs 2,925 each, according to a deal term sheet. That would be a discount of 4.2 to 5.9% to TCS's Monday closing price of Rs 3,052.15, the Reuters report suggested.

Tata Sons intends to use the proceeds from the share sale to reduce debt in the group's telecom arm Tata Teleservices which has debt of around Rs 400-billion; the PTI report suggested quoting sources.