Government has decided to sell 16.12 per cent stake in Tata Communications Limited TCL through an Offer for Sale, OFS. The floor price of each share of face value of ten rupees is fixed at one thousand one hundred 61 rupees.
Secretary Department of Investment and Public Asset Management DIPAM Tuhin Kanta Pandey in a Tweet said, on the first day today the sale is open to non-retail investors and retail investors can participate in the bid tomorrow.
Base size of the offer is ten percent amounting to 2.85 crore shares and remaining 6.12 percent or about 1.74 crore shares is kept as over subscription or green shoe option. If the entire offer is subscribed, Government is expected to raise more than 5 thousand 300 crore rupees.
Government holds 26.12 per cent stake in TCL earlier known as Videsh Sanchar Nigam Limited. As per the decision of Cabinet Committee on Economic Affairs, remaining stake of Government in TCL post OFS, including the unsubscribed portion of the OFS would be sold to Panatone Finvest Limited, a Tata group company at the price discovered in OFS. The whole transaction is likely to raise more than 8 thousand 6 hundred 42 crore rupees for the Government.
So far this fiscal, Government has raised 21 thousand 302 crore rupees from CPSE disinvestments. The revised disinvestment target for this financial year has been set at 32 thousand crore rupees.
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