The government will sell up to 16.12 per cent stake in Tata Communications Ltd (TCL) through an Offer for Sale starting on Tuesday, DIPAM Secretary Tuhin Kanta Pandey said on Monday.
“Offer for sale of GoI equity in TCL opens tomorrow for Non-Retail Investors. Day 2 for Retail Investors. Government would divest 10 per cent shares with an additional 6.12 per cent as Green Shoe Option,” Pandey said in a tweet.
In 2002, VSNL was privatized by selling a quarter of its stock and handing over management control to Panatone Finvest Ltd, a strategic partner. The company’s name was changed to TCL following the strategic disinvestment.
TCL’s promoters own 74.99 percent of the company, according to its shareholding pattern. The government of India owns 26.12% of the company, while Panatone Finvest owns 34.80% and Tata Sons owns 14.07 percent. The public owns the remaining 25.01 percent.
In the current fiscal year, the Department of Investment and Public Asset Management (DIPAM) intends to sell its entire stake in TCL.
According to TCL’s disinvestment strategy, 16.12% of the government’s shareholding will be provided through OFS, with the rest, including any remaining portion in the OFS, going to Panatone Finvest.
The government has collected Rs 21,302 crore from CPSE disinvestments so far this fiscal. The revised disinvestment target for this financial year is Rs 32,000 crore, significantly less than the budgeted Rs 2.10 lakh crore.