Updated Mar 13, 2021 | 06:40 IST
The government holds 7,44.46,885 equity shares of TCL, which, at last closing price of Rs 1,289.75 per unit, stands at a value of over Rs 9,601 crore. Govt to sell 16.12% stake in Tata Communications through OFS
New Delhi: The government will sell its entire stake in Tata Communications through an offer for sale (OFS) and the rest to Tata Son s investment arm Panatone Finvest Ltd. Currently, the government holds 26.12 per cent stake in Tata Communications, Panatone Finvest Ltd 34.8 per cent and Tata Sons 14.07 per cent, respectively. Tata Communications Ltd has today (Friday) signed an amendment agreement between the President of India, Panatone Finvest Ltd, Tata Sons Private Ltd and the company for sale of the entire shareholding in the company by the Government of India, Tata Communications Ltd. (TCL) said in the BSE filing on Friday.
The Union government is offloading its entire stake in Tata Communications. It currently holds a 26.12 per cent stake (7,44,46,885 shares) in Tata Communications, which will fetch almost Rs 9,602 crore based on the closing price of the Tata group firm on Friday.
Of this around 16.12 per cent will be sold through an offer for sale (OFS) while the rest will go to Panatone Finvest, an investment arm of Tata Sons.
It may be recalled that VSNL was privatised in 2002 by the Atal Bihari Vajpayee-led NDA government when it divested a 25 per cent shareholding along with transfer of management control to Panatone Finvest Ltd, the strategic partner. Subsequent to the strategic divestment, the name of the company was changed to Tata Communications Ltd.
Read more about Govt to sell stake in Tata Comm on Business Standard. The Government of India will sell its entire stake in Tata Communications through an offer for sale and the rest to Tata Son s investment arm Panatone Finvest.
The details of the said agreement required are as below:
(i) As on date, the Government of India (Government) holds 7,44,46,885 equity shares of the Company representing 26.12% of the total paid up equity share capital of the Company.
As on date, Panatone Finvest (Panatone) and Tata Sons hold 34.80% and 14.07% respectively aggregating to 48.87% of the total paid up equity share capital of the Company.
As on date, Government, Panatone and Tata Sons are the promoters of the Company.
(ii) As an initial step, the Government will sell up to 4,59,46,885 equity shares forming 16.12% equity shareholding of the Company through an Offer for Sale (OFS) through the stock Exchange Mechanism.
Government will sell a 16.12% stake in Tata Communications through an offer-for-sale. The remaining shares will be sold to Tata Sons Pvt.’s investment arm Panatone Finvest