Tata group companies, led by holding company Tata Sons, are set to make a killing in the initial public offering of Tata Consultancy Services Ltd.
Tata Sons, which at present holds a 90 per cent stake in TCS, will offload 14.4 million shares (a 3.17 per cent stake) and rake in almost Rs 2,163.62 crore (Rs 21.64 billion) if the issue is priced at Rs 950 per share. If the issue is priced at Rs 1,000 for a Re 1 face value share, the booty will be even larger.
The Mistry family, the largest individual shareholders in Tata Sons, will also be selling their shares in the IPO. Shapoorji Pallonji Mistry and Cyrus Mistry, sons of construction baron Pallonji Shapoor Mistry, will sell 1.26 million shares each representing a combined stake of 0.56 per cent stake in TCS Ltd., and will rake in Rs 239.40 crore (Rs 2.39 billion).
Group hospitality major Indian Hotels Company, which wants to sell 200,000 shares (0.04 per cent), will make Rs 19 crore (Rs 190 million). The investment arm of Tata Steel, Kalimati Investment Company, will sell 0.413 million shares representing a 0.09 per cent stake in TCS to rake in Rs 39.30 crore (Rs 393 million).
But
Tata companies reported a mixed trend on the bourses on Friday. The Tata Tea, Tata Investment Corporation and Indian Hotels scrips closed higher, while the Tata Steel, Tata Power, Tata Motors and Tata Chemicals scrips closed lower.
The Tata Investment Corporation stock gained the most, 9.92 per cent, while Tata Chemicals lost the most, 3.43 per cent. The Tata Investment Corporation stock closed at Rs 204.45 against Thursday's closing of Rs 186. The Tata Tea stock gained 1.15 per cent -- from Rs 335.15 to Rs 336.30.
The Indian Hotels scrip gained 0.60 per cent to Rs 343.90 but the Tata Power stock closed 3.43 per cent lower at Rs 230.90. The Tata Motors counter lost 2.96 per cent to Rs 393.45, while the Tata Chemicals scrip was down 2.67 per cent to Rs 132.55.
The two Tata charitable trusts -- Jamsetji Tata Trust and Navajibai Ratan Tata Trust -- will sell 9.53 million (2.09 per cent) and 5.46 million (1.20 per cent) shares, respectively. At an issue price of Rs 950, the Jamsetji Tata Trust would get Rs 905.47 crore (Rs 9.05 billion) while the Navajibai Trust would get Rs 519.53 crore (Rs 5.19 billion).
Post-offer, Tata Sons' shareholding in TCS will fall to 82.69 per cent.
In the event that TCS exercises the green shoe, the Tata Sons' stake will fall further to 80.95 per cent. Tata Tea, Tata Investment Corporation and Tata Industries, which hold 0.04 per cent stake, 0.01 per cent and 0.06 per cent, respectively, will not sell their holdings in the IPO.
Tata group chairman Ratan N Tata holds 377,000 shares and Pallonji Shapoorji Mistry, who is a director of Tata Sons, holds 732,000 shares in TCS.
