TCS Shares Down 2% After 2.2 Crore Shares Worth Rs 8,900 Crore Change Hands; Details

TCS slipped 2 per cent to Rs 4,055 amid reports that Tata Sons was to divest a 0.65 per cent stake (23.4 million shares) via block deal at a floor price of Rs 4,001 per share today.

Shares changed hands at an average price of Rs 4,043 per share, taking the total transaction value to Rs 8,894 crore. The offer price for the transaction was fixed at Rs 4,001 per share, which was a 3.45 per cent discount to Monday’s closing price.

Buyers in the transaction are not immediately known.

Tata Sons, the promoter entity of TCS had planned to sell 0.64 per cent equity in the technology giant through the block deal.

Based on the December shareholding pattern, promoters held a 72.41 per cent stake in TCS, of which Tata Sons held a 72.38 per cent stake, while Tata Investment Corporation holds the rest.

Proceeds from this TCS block may be used by Tata Sons to pare down debt at the group level.

Tata Group stocks have been in focus through the month of March after a note from Spark Capital spoke about an imminent listing of Tata Sons by September 2025 as it will complete three years of being notified as an upper-layer NBFC by the Reserve Bank of India.

An RBI mandate states that an upper-layer NBFC will have to list within three years of being notified of the same by the central bank. Tata Sons was notified in September 2022.

However, sources have told CNBC-TV18 that the listing of Tata Sons is unlikely soon and that the group is considering various avenues to navigate the RBI norms. One of those was to cut down on debt and hive off entities like Tata Capital.

Sharekhan has a “buy” call on the stock with a target price of Rs 4,750. The bullish stance is on account of TCS’ strong domain expertise, and geographical presence.

TCS’ ability to cross-sell makes it well-placed to grab opportunities across cost optimisation, digital transformation, and newer technology services, the brokerage said.