The central government has completed disinvestment of its entire 26.12 per cent stake in Tata Communications for Rs 8,846 crore. This will help the government get closer to its revised disinvestment target of Rs 32,000 crore towards the end of a turbulent fiscal.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey stated that the Centre offloaded its stake in Tata Communications (TCL) in two tranches.
"Disinvestment of government holding completed of 16.12 per cent in TCL through OFS at Rs 5,457 crore and 10 per cent to strategic partner at OFS discovered price for Rs 3,389 crore. With this, government exits from TCL with total proceeds of about Rs 8,846 crore," Pandey tweeted.
Disinvestment of Govt holding completed of 16.12% in TCL through OFS at Rs 5,457 cr and 10% to strategic partner at OFS discovered price for Rs 3,389 cr .With this, Government exits from TCL with total proceeds of Rs about Rs 8,846 cr. pic.twitter.com/FI9hTFIiLN— Secretary, DIPAM (@SecyDIPAM) March 22, 2021
Prior to the stake sale, the Government of India held 26.12 per cent stake in Tata Communications, while Panatone Finvest had 34.80 per cent and Tata Sons 14.07 per cent. The remaining 25.01 per cent was with the public.
Government had sold 16.12 per cent stake through an offer for sale (OFS) to retail and non-retail investors at the floor price of Rs 1,161 per equity. The government has reserved a minimum of 25 per cent of the offer share for mutual funds and insurance companies subject to valid bids and 10 per cent for retail investors. The OFS was subscribed 1.33 times.
On March 19, Department of Telecommunications informed that it has sold its remaining 10 per cent stake to Tata Sons' subsidiary Panatone Finvest in an off-market trade.
"We wish to inform you that we have 2,85,00,000 equity shares held by us in Tata Communications Limited representing 10 per cent of the total shareholding of the company, to the buyer on March 18, 2021, by way of an off-market trade," the department said in a regulatory note on behalf of the President of India.
Tata Communications was formed after Tata Group acquired stake in 2002 in erstwhile Videsh Sanchar Nigam Limited set up by the government in 1986. The company claims presence in 200 countries and territories around the world, serving 7,000 customers globally that represent 300 of the Fortune 500.