TCS plunges 6% on share sale buzz

Munbai: Tata Sons, the holding company of salt-to-software Tata conglomerate, is set to sell more than $1 billion worth of shares in flagship Tata Consultancy Services in a block deal on Tuesday, a source with knowledge of the matter told Reuters. The stock had hit a high of Rs 2,929 and a low of Rs 2,885.20 so far during the day.

On NSE, shares of the company dived 5.90 % to ₹ 2,872.

According to Bloomberg, Tata Sons was offering 28.27 million shares of Asia's largest software developer after the market closed on Monday, planning to sell the shares between Rs 2,872 to Rs 2,925 a share. Tata Sons' move to sell over 28 million shares of TCS comes nearly 10 months after it received Rs 11,722 crore by participating in the software major's share buyback programme. The plan is to reduce the considerable debt obligations in the wireless telecom units - Tata Teleservices and Tata Teleservices (Maharashtra) - and to spruce up equity interests in key Tata group companies.


That would be a discount of 4.2 to 5.9 percent to TCS's Monday closing price of Rs 3,052.15.

Incidentally, the partial stake sale by Tata Sons in TCS comes at a time when market sentiment vis-a-vis IT services companies have improved as the United States economy picks up even as the sector is expected to witness continued traction on the digital front.

Related Articles

  • Twitter Reportedly Suspends a Ton of Accounts

    Twitter Reportedly Suspends a Ton of Accounts

    Tweetdecking is the practice seen with groups on Tweetdeck who mass-retweet each others posts in order to get them viral. In January, the company unveiled new measures against spam and tweetdecking .
    Denver Broncos expected to make Case Keenum an offer

    Denver Broncos expected to make Case Keenum an offer

    If the Broncos had that kind of quarterback play past year , I don't think we'd be talking about a five-win team. Cousins' sister lives in the "Phoenix area", which supposedly will be a factor in Cousins' decision.
    Barcelona midfielder Coutinho hails Dembele after Malaga win

    Barcelona midfielder Coutinho hails Dembele after Malaga win

    He had more success today, but the good thing is that he always tries. "We keep on giving him support, we like him a lot". The victory gives Barcelona an eleven-point led at the top of the table, although Atletico Madrid have a game in hand.
  • Former Colombian guerillas cast votes in first foray into electoral politics

    Former Colombian guerillas cast votes in first foray into electoral politics

    Colombians also voted for candidates from the right-wing and leftist coalitions to represent them in May's presidential election. The party hopes to win many more seats and backed 23 candidates for Senate and 51 for the lower house.
    Longtime Dow Chemical chief Andrew Liveris to leave

    Longtime Dow Chemical chief Andrew Liveris to leave

    He also wrote a book, " Make It in America ", about achieving manufacturing success in the U.S. Jeff Fettig, co-lead independent director for DowDuPont, will take over as executive chairman.
    NYC Helicopter Crash: Did Safety Harnesses Keep Passengers From Escaping Doomed Chopper?

    NYC Helicopter Crash: Did Safety Harnesses Keep Passengers From Escaping Doomed Chopper?

    The National Transportation Safety Board is sending members to investigate, and is expected to hold a news conference on Monday. Local authorities will confirm the number of people on board, their names and conditions.
  • Yates takes Paris-Nice lead with stage win

    Yates takes Paris-Nice lead with stage win

    Soler did not have the legs to contest the sprint finish, with De la Cruz overhauling Fraile at the death. Hopefully, I can improve and work hard and I take the top spot.

    BidaskClub Lowers Costco Wholesale (COST) to Buy

    With 316,200 avg volume, 11 days are for Genesee & Wyoming Inc Class A (NYSE:GWR)'s short sellers to cover GWR's short positions. Wealthcare Advisory Partners LLC acquired a new stake in shares of Costco Wholesale in the third quarter valued at $102,000.
    SC  woman removed her own eyes as a sacrifice to God

    SC woman removed her own eyes as a sacrifice to God

    Tompkins has launched a fundraising campaign to get Muthart a guide dog once she is out of the hospital. Kaylee Muthart , 20, blinded herself while under the influence of methamphetamine. 'That was a struggle.
  • The ZIOPHARM Oncology (ZIOP) Trading -8.7% Higher

    Shares of the company have performed 21.54% over the last quarter and moved 85.14% over the last twelve months. The average 12 month price objective among analysts that have covered the stock in the a year ago is $16.50.
    Hillary Clinton takes her 'deplorables' argument for another spin

    Hillary Clinton takes her 'deplorables' argument for another spin

    Some have suggested Clinton was saying wealthy people's votes should have counted for more. But even the way she describes their alleged racism and sexism is pretty remarkable.
    Russian Athlete Rumyantseva Wins Gold in Ski Race at Paralympic Games

    Russian Athlete Rumyantseva Wins Gold in Ski Race at Paralympic Games

    The offensive barrage was sparked by Tyler McGregor's (Forest, Ont.) four goals, including the first of the game, which was his 100th career point.