TCS shares fall over 5%; m-cap dips by Rs 30513 cr


Shares of Tata Consultancy Services fell over 5% in early trade on Tuesday after reports said that holding company Tata Sons Limited planned to sell about 1.5% of its stake in the company to pay debts.

Citigroup Inc. and Morgan Stanley are arranging the offering of Tata Consultancy stock, according to Monday's terms. During the day, it slipped 5.49 per cent to Rs 2,884.10.

Tata Sons, the promoter of major operating companies of the Tata group, is planning to raise around Rs 8,200 crore by selling stake in IT major TCS, according to investment banking sources. That's a discount of 4-6% on TCS' Monday closing price of Rs 3,052 on the BSE. According to Motilal Oswal, these trades are done on a special window that opens for 35 minutes in the morning trading hours. Last year, Tata had sold off the Tata Teleservices Ltd.'s mobile-phone operations to Bharti Airtel raise funds for creditors as well.

White House may address Tuesday's special Pennsylvania election
When Trump stood on stage with Saccone in Moon Township on Saturday, he made clear the pressure for a GOP win Tuesday. He said he remembers when the state's industrial areas in that region were churning out Firestone tires and steel.

When contacted, Tata Sons declined to comment. Tata Sons plans to use the proceeds to repay debt of units Tata Teleservices and Tata Teleservices Maharashtra, one of the people said at the time. The $1.5 billion six-year loan is set to be the first offshore syndicated facility taken out by Tata Sons since 2007. After the block deal, Tata Sons will hold about 73% in TCS, which generated $18 billion in revenues in fiscal 2017. The money raised from the stake sale will be used by Tata Sons to strengthen its balance sheet.

TCS, the top Indian software services exporter, is the second-most valuable company in the country with a market capitalization of close to $90 billion.