Tag: tata communications

Govt Sells 10% Stake to Exit Tata Communications in Off-market Trade

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The government on Friday said it has exited Tata Communications after selling 10 per cent stake to Tata Sons’ arm Panatone Finvest in an off-market trade. The Government of India held 26.12 per cent stake while Panatone Finvest had 34.80 per cent, Tata Sons 14.07 per cent and the remaining 25.01 per cent was with the public before the transaction. “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 of Telecom on behalf of the President of India said in a regulatory note.

According to the regulatory filing, the government has sold 10 per cent stake to Panatone Finvest Limited. The government has already sold 16.12 per cent stake through an offer for sale 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. 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 stake is part of the government’s disinvestment process. The government has set a target to realise Rs 32,000 crore in this fiscal.

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Tata Communications stake sale: Government sells 10% stake to exit Tata Communications – Times of India

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NEW DELHI: The government on Friday said it has exited Tata Communications after selling 10 per cent stake to Tata Sons‘ arm Panatone Finvest in an off-market trade.
The government of India held 26.12 per cent stake while Panatone Finvest had 34.80 per cent, Tata Sons 14.07 per cent and the remaining 25.01 per cent was with the public before the transaction.
“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 of telecom on behalf of the President of India said in a regulatory note.
According to the regulatory filing, the government has sold 10 per cent stake to Panatone Finvest Limited.
The government has already sold 16.12 per cent stake through an offer for sale 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.
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 stake is part of the government’s disinvestment process. The government has set a target to realise Rs 32,000 crore in this fiscal.

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Govt sells 10% stake to exit Tata Communications

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The stake is part of the government’s disinvestment process.

The government on Friday said it has exited Tata Communications after selling 10% stake to Tata Sons’ arm Panatone Finvest in an off-market trade.

The Government of India held 26.12% stake while Panatone Finvest had 34.80%, Tata Sons 14.07% and the remaining 25.01% was with the public before the transaction.

 

“We wish to inform you that we have 2,85,00,000 equity shares held by us in Tata Communications Limited representing 10% of the total shareholding of the company, to the buyer on March 18, 2021 by way of an off-market trade,” the Department of Telecom on behalf of the President of India said in a regulatory note.

According to the regulatory filing, the government has sold 10% stake to Panatone Finvest Limited.

The government has already sold 16.12% stake through an offer for sale to retail and non-retail investors at the floor price of ₹1,161 per equity.

The government has reserved a minimum of 25% of the offer share for mutual funds and insurance companies subject to valid bids and 10% for retail investors. The OFS was subscribed 1.33 times.

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 stake is part of the government’s disinvestment process. The government has set a target to realise ₹32,000 crore in this fiscal.

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Tata Communication OFS: Tatas’ stake in Tata Communications will rise to 59% | India Business News – Times of India

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MUMBAI: The offer for sale (OFS) for the government’s 16.1% stake in Tata Communications closed on Wednesday with the total bid a little over 4.6 crore shares that are being divested.
With the average bidding price at Rs 1,171, the government will mop up nearly Rs 5,400 crore from this divestment offer. The retail portion in the Tata Comm OFS was subscribed 1.4 times on Wednesday, the last day of the bidding, data on BSE showed.
According to the contours of the deal, after selling 16.1% stake through the OFS, the government will sell the remaining 10% in Tata Comm to its current main promoter Tata Sons, which will see its stake rise to about 59% in the company.
After the completion of the deal in its present form, Tata Comm will be the second listed Tata operating company in which the promoter will have the highest stake. Currently TCS, India’s largest software services provider, holds this crown with Tata Sons holding 72%.
Tata observers said that Tata Sons chairman N Chandrasekaran could take over as chairman of Tata Comm following the changes in shareholding structure. The last time a Tata Sons chairman was also the chairman of Tata Comm was in the early 2000s. Ratan Tata held that position at Tata Comm till April 2005. Tata Sons acquired Tata Comm (earlier known as VSNL) from the government in February 2002, beating Reliance’s offer.
The divestment will clear the way for Tata Sons to manage Tata Comm’s affairs solely. In the past, the government was a stumbling block in Tata Comm’s equity fund-raising plans.
The government didn’t want to dilute its equity, and so Tata Comm had to raise expensive debt to finance its growth initiatives, including M&As. It also restricted Tata Comm from investing in other Tata entities, specifically in Tata Teleservices.
“With the government offloading its holding in Tata Communications, this may provide flexibility to the management on strategic decisions in future,” said RBSA Advisors MD Manish Kaneria.
Tata Comm has been deleveraging its balance sheet and has lowered its net debt to Rs 8,000 crore from Rs 9,200 crore in fiscal 2020. The company is also likely to unlock value from its 756-acre land holdings after the government’s share-sale. The OFS will increase the public float of Tata Comm in the market.

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