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Tata Comm tumbles as OFS begins

Tata Communications slumped 4.68% to Rs 1236.60 after the offer for sale (OFS) opened for non-retail investors today, 16 March 2021. Through the OFS, the Government of India proposes to sell up to 2,85,00,000 equity shares (representing 10% stake), with an option to sell an additional 6.12% stake or 1,74,46,885 equity shares in case of oversubscription. The floor price for the OFS is Rs 1161 per equity share, a 10.51% discount to Tata Comm s closing price of Rs 1297.30 on Monday, 15 March 2021. The total OFS size (base size + green shoe) stands at 4,59,46,885 shares, representing 16.12% of outstanding equity shares of the company, aggregating to Rs 5,334.43 crore. The Government of India held 26.12% stake in Tata Communications as of 31 December 2020.

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