TCS shares slip 5% after Tata Sons offloads stake via block deal

TCS shares slip 5% after Tata Sons offloads stake via block deal

Tata Sons, the holding company of TCS sold about 1.5 per cent shares of TCS for about $1.25 billion in a block deal. Citigroup and Morgan Stanley are managing the TCS share sale, touted to be the biggest block trade this year at over 28 million shares. Tata Sons, which held 73.52% stake in TCS (as on 31 December 2017), will sell around 2.82 crore shares of the IT major at between Rs 2,872 to Rs 2,925 a share. That's a discount of 4-6% on TCS' Monday closing price of Rs 3,052 on the BSE.

On the BSE, 17.36 lakh shares were traded in the counter so far compared with average daily volumes of 72,000 shares in the past two weeks. During the day, it slipped 5.49 per cent to Rs 2,884.10. Tata Sons announced the sale of the consumer mobile services business to Airtel in October 2017 and had agreed to take care of the unit's debt obligations. The latter had to shell out $1.2 billion to NTT DoCoMo past year in order to settle the long-standing dispute with the Japanese telecom giant after it exited their joint venture in 2013. Tata sold Tata Teleservices Ltd.'s mobile-phone operations to Bharti Airtel Ltd. past year and pledged to pay the unit's obligations. The proceeds from the TCS sale might be used to clear some of this debt. The plan is to pare the debt in the wireless telecom units - Tata Teleservices and Tata Teleservices (Maharashtra) - and to shore up equity interests in key Tata group companies.

Row erupts over new Frida Kahlo Barbie
Mattel says it received the rights to produce the doll with the Frida Kahlo Corporation , which was founded in Panama in 2005. But the latter has violated their contract by failing to inform Kahlo's relatives about the uses of her image, he told AFP.

In addition, the holding company is seeking a $1.5 billion offshore syndicated loan, to pay down expensive debt at its telecommunications unit. TCS, the top Indian software services exporter, is the second-most valuable company in the country with a market capitalisation of close to $90 billion., according to a report of Reuters.

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