Tata Sons to trim stake in TCS, likely to dodge the giant IPO [Video]

Tata Sons, which had consolidated borrowings of ₹1.58 lakh crore as of March 2023, plans to offload as many as 2.3 crore shares in Tata Consultancy Services (TCS). The offer price for offloading has been set at ₹4,001 per share, with a discount of 3.6% to Monday’s closing price for TCS shares. The proposed deal will see the promoter raise at least ₹9,200 crore by offloading a 0.64% stake in the company.

The selling stake by Tata Sons could be the start of a fundraising exercise to reduce its debt at the group level so that it can avoid the mega-initial public offering (IPO). The consolidated borrowings of Tata Sons (other than debt securities) have increased by 8% to ₹1.58 lakh crore in FY23. 

Earlier in March, the market anticipated the company going public as it had been classified as an upper-layer non-banking financial company (NBFC) last year. Sensing an imminent listing, many group stocks, especially …