Tata Sons to offload 0.64% stake in TCS in block deals for over ₹9,300 crore: Reports

Tata Sons, the holding company of the Tata Group of firms, is looking to sell 2.34 crore shares of Tata Consultancy Services (TCS) through block deals at a floor price of ₹4,001 per share, amounting to around ₹9,362 crore, according to media reports.

Block deal price at a 3.45% discount

The price offered for the block deal comes at a 3.45% discount on the closing price of TCS shares on Monday.

TCS shares on Monday scaled the all-time high of ₹4,254.75 apiece on the NSE but ended the day 1.78% lower at ₹4,144.25 a share.

The total number of shares on offer amounts to 0.64% of the IT firm's total outstanding equity. Tata Sons holds a majority stake of 72.38% in the group's flagship company TCS. Shares of the IT major have risen by 30% over the past year.

TCS stake sale to help Tata Sons avoid listing

The sale of shares could help the Tata Group avoid listing Tata Sons on the stock exchanges, as per the Reserve Bank of India (RBI) norms. Tata Sons was classified as the 'upper layer' non-banking finance company (NBFC) by the central bank. RBI norms mandate 'upper layer' NBFCs to be listed on the stock exchanges. Tata Sons needs to launch its initial public offer (IPO) and get listed on the stock exchanges by September 2025.

TCS Q3FY24 performance

For Q3FY24, TCS posted a 1.96% rise in its consolidated net profit at ₹11,097 crore, as against ₹10,883 crore in the same quarter a year ago. The net profit was impacted by a ₹958 crore one-time charge towards the settlement of a legal claim. Excluding the settlement of legal claims, the profit for the quarter came in at ₹11,774 crore.

The Mumbai-headquartered company’s consolidated revenue for the quarter increased by 4.04% year-on-year to ₹60,583 crore from ₹58,229 crore in the corresponding three months of FY23.