Tata Sons to sell 23.4 mn TCS shares worth Rs 9,362 crore in block deal

This marks the second significant block deal in the domestic markets this month, following British American Tobacco’s (BAT’s) sale of a 3.5 per cent stake in ITC on March 13 to raise Rs 17,485 crore ($2.1 billion).Tata Sons is set to divest a 0.65 per cent stake in its flagship Tata Consultancy Services (TCS) on Tuesday in the open market, according to a term sheet. It will offload 23.4 million shares at a floor price of Rs 4,001.
The base price, which is 3.7 per cent lower than the TCS stock’s last close, will enable Tata Sons to raise Rs 9,362 crore ($1.13 billion). JP Morgan and Citi are the investment banks handling the share sale.TCS’ shares fell 1.8 per cent on Monday to close at Rs 4,144 apiece, giving the software exporter a valuation of Rs 15 trillion. Currently, Tata Sons holds a 72.38 per cent stake in TCS, valued at Rs 10.9 trillion.
In December, Tata Sons raised nearly Rs 12,300 crore by tendering shares of TCS in its Rs 17,000 crore buyback. The buyback price was set at Rs 4,150 per share. Since 2017, Tata Sons has raised about Rs 54,000 crore by tendering shares in buyback.
Over the past year, TCS shares have gained nearly 33 per cent, slightly outperforming the Nifty50 index, which has risen 30 per cent.Recently, Tata Sons has been in the news following brokerage reports suggesting that the holding company will need to list by September 2025 to comply with Reserve Bank of India (RBI) requirements.

Tata Sons, registered as a core investment company, is classified as an “upper-layer” non-banking financial company (NBFC) by the central bank.A report by Spark PWM (formerly Spark Family Office and Investment Advisors) suggested that if listed, Tata Sons could command a market value between Rs 7 trillion and Rs 8 trillion.

Tata Sons has used its dividend income to either write-off bad assets or to fund new ventures, such as e-commerce and its recent foray into the semiconductor sector. The Tata group is setting up the country's first semiconductor fabrication plant in Dholera (Gujarat), in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) with an investment of Rs 91,000 crore. Also, Tata Semiconductor Assembly and Test is establishing a chip assembly and testing unit in Morigaon (Assam) with an investment of Rs 27,000 crore.