Tata Sons, the holding company of Tata Group, is reportedly gearing up to pay a major chunk of the Rs 10,000 crore dues of Tata Teleservices (TTSL) to the government. The holding company had earlier written off its investment of Rs 28,652 crore in TTSL and compensated about Rs 8,000 crore to Japanese partner DoCoMo for the losses it incurred.
The telecom misadventure has cost Tata Sons heavily and profit declined to Rs 4,379 crore in the last fiscal from Rs 18,432 crore before that. Although Tata Sons is the parent of more than 100 group companies, 90 per cent of its dividend income comes from TCS - a sign of over-dependence.
Tata Sons, which made a windfall gain of Rs 10,000 crore in the TCS buyback in FY18, is also looking to sell more shares worth Rs 11,500 crore in the second round of TCS buyback.