Tata Sons, the holding company of the Rs 49,000-crore (Rs 490 billion) Tata group, is planning to transfer its holdings in different information technology companies to Tata Consultancy Services when the division is spun off into a separate company.

The process is expected to be completed over the next few months. Tata Sons obtained shareholder approval for the transfer of TCS into a shell company, Orchid Print, in January.

The holding company will also not buy out the 10 per cent that some of its shareholders hold in Orchid Print. This will result in several Tata Sons shareholders getting the option to exit from TCS once it is listed. The exact identity of these shareholders could not be ascertained.

The Tatas hold over 34 per cent in Tata Elxsi, most of which is through Tata Sons. Tata Sons also holds over 74 per cent in Tata Infotech, over 68 per cent in CMC, and 50 per cent in another joint venture with Swiss Air Lines. Tata Technologies, which too is expected to be merged into TCS, is a subsidiary of Tata Engineering.

Tata sources said the move was aimed at 'reducing complications' because most of the group infotech companies would be merged into TCS after its listing.

If the holdings remain with Tata Sons and a stock swap is undertaken for the set of mergers, outside shareholders of the infotech companies will have to be given shares of the group's holding company, a situation Tata Sons wants to avoid. A Tata Sons spokesperson, when contacted, did not comment on the issue.

The proposed merger will create an infotech giant with over 28,000 employees, revenues of almost Rs 5,500 crore (Rs 55 billion) and profits exceeding Rs 1,300 crore (Rs 13 billion).