Tata Sons Ltd., the holding company for India's biggest business group, raised $1.38 billion after upsizing its offering of Tata Consultancy Services Ltd. stock, people with knowledge of the matter said. 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.
Shares of Tata Consultancy, Asia's largest software developer, fell as much as 5.9% in Tuesday trading.
Tata Sons is expected to use these funds for other group activities, including debt reduction goal.
Past year in October, Tata Group had agreed to sell its loss-making mobile telephony business to Bharti Airtel on "a debt-free cash-free basis".
Reports suggested that the promoter sold more than 1.5 percent stake worth close to Rs 10,000 crore at around 5 percent discount to Monday's closing price through block deals in opening trade. A part of the proceeds will be used to raise its holdings in some listed units, the report added. While previous year Tata Songs boosted its stake in Tata Motors Ltd, the owner of Jaguar Land Rover, it is also planning to buy 6.6 percent additional stakes in Indian Hotels Co. that was held by Tata Trusts. Last year, it boosted its stake in Tata Motors Ltd., the owner of Jaguar Land Rover.
Citigroup and Morgan Stanley managed the offering. The $1.5 billion six-year loan is set to be the first offshore syndicated facility taken out by Tata Sons since 2007. 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.