In another divestment move, the Union government has announced to have shelved its 10% stake in Tata Communications marking an exit from the company. The Centre has surrendered its state to Tata Sons’ arm Panatone Finvest in an off-market trade.
The Government of India earlier held a 26.12% stake while Panatone Finvest had 34.80%, Tata Sons 14.07% and the remaining 25.01% was with the public before the transaction.
The stake sale is part of the government’s disinvestment process. The government has set a target to realise Rs 32,000 crore in this fiscal.
“We wish to inform you that we have 2,85,00,000 equity shares held by us in Tata Communications Limited representing 10% of the total shareholding of the company, to the buyer on March 18, 2021, by way of an off-market trade,” the Department of Telecom on behalf of the President of India said in a regulatory note.
According to the regulatory filing, the government has sold a 10% stake to Panatone Finvest Limited. The government has already sold a 16.12% stake through an offer for sale to retail and non-retail investors at the floor price of Rs 1,161 per equity.
The government has reserved a minimum of 25% of the offer share for mutual funds and insurance companies subject to valid bids and 10% for retail investors. The OFS was subscribed 1.33 times. Tata Communications was formed after Tata Group acquired a stake in 2002 in erstwhile Videsh Sanchar Nigam Limited set up by the government in 1986.
