TCS shares drop 3% on Tata Sons’ $1.1 billion stake sale plan

Tata Sons, the investment arm of Tata Group, has outlined its plans to sell 2.3 crore shares of Tata Consultancy Services (TCS) through block deals. This offering represents approximately 0.64% of TCS’ total outstanding equity. As per exchange data from December 31, Tata Sons maintained a significant 72.4% stake in TCS. With a market capitalisation of Rs 14.99 lakh crore, TCS ranks as India’s second most valuable listed company, following Reliance Industries.

On March 19, shares of Tata Consultancy Services (TCS) dropped over in the morning trading, reaching an intraday low of ₹4,022 per share on the National Stock Exchange (NSE). This drop reflects a roughly 3% decrease from the previous day’s closing price of ₹4,152.50 per share. Stock market analysts attribute today’s decline in TCS share price to Tata Sons’ stake sale. Tata Sons has initiated a sale of 2.3 crore shares of TCS at ₹4,001 per share through block deals, with the aim of raising $1.1 billion. The offer price of Rs 4,001 represents a 3.4 percent discount compared to Monday’s closing price.

The primary objective behind this stake sale, as reported by TOI, is to raise funds for debt repayment within the holding company and to aid in its declassification from the upper layer classification by the Reserve Bank of India (RBI).

The spotlight on Tata Group stocks intensified in March following speculation triggered by a Spark Capital report hinting at a possible listing of Tata Sons by September 2025. This proposed action aligns with the RBI’s directive for upper layer Non-Banking Financial Companies (NBFCs) to undergo listing within three years of notification, a milestone that Tata Sons is set to achieve by that timeframe.