Tata Sons on Tuesday sold shares valued at almost Rs 9,000 crore in TCS through open market transactions.
Tata Sons is looking to sell around 2.83 crore shares amounting to about 1.48 per cent stake in TCS and the transaction is likely to be happen this week, reported news agency PTI citing investment banking sources.
Tata Sons priced its sale of Tata Consultancy shares at about 2,872 rupees apiece, the bottom of a marketed range, according to the people, who asked not to be identified because the information is private.
Other industry experts point out that Tata Sons may choose to use the TCS stake sale proceeds to fund Tata Steel, which is hoping to snap up Bhushan Steel and Bhushan Steel and Power.
Almost 2.06 crore shares were offloaded at a price of Rs 2,876.46 apiece. On the NSE, it settled 5.44 per cent lower at Rs 2,886.10 apiece.
After this block deal, Tata Sons will hold about 73% in TCS, which generated $18 billion in revenues in fiscal 2017.
It is set to acquire 7.89 crore shares (from Sir Dorabji Tata Trust, Lady Tata Memorial Trust and Sir Ratan Tata Trust) representing 6.64% stake in IHCL thereby taking its overall shareholding in the hospitality firm to 36.43%.
When contacted, Tata Sons declined to comment, the report said.
Tata Sons is reportedly planning to use the proceeds to pay debts of units Tata Teleservices and Tata Teleservices Maharashtra.
In 2017, Tata sold Tata Teleservices Ltd's mobile phone operations to the BSE-listed Bharti Airtel Ltd, and had promised to service the unit's debt. Last year, it boosted its stake in Tata Motors that also owns Jaguar Land Rover.