New Delhi: The Government will sell 16.12% stake in Tata communications<\/a> (Tata comm) in which more than 459.46 lakh equity shares will be offered to retail and non retail investors over a period of two days- March 16 and 17.
\"The President of India, acting through and represented by the Department of Telecommunications,Ministry of Communications, Government of India ,is one of the promoters of Tata Communications<\/a> Limited ( \"the seller\"). The seller proposes to sell up to 2,85,00,000 equity shares of the company, (representing 10% of the total issued and paid up equity share capital of the company) ...on March, 16 2021...for non retail investors, only,\" said the company in a regulatory exchange.
It added that on March 17, the OFS will be offered to the retail and non retail investors including those who chose to carry forward their unallocated bids, with an option to additionally sell 1,74,46,885 equity shares, representing 6.12% of the total issued, subscribed and fully paid up equity share capital of the company.
The equity shares will have a face value of Rs 10 each.
This comes on the back of the government's call to sell its 16.12% in Tata Comm and the remaining 10% of its holding in the company to Panatone<\/a> Finvest, an investment arm of Tata Sons<\/a>. The OFS will be the first step.
Shares of Tata Comm closed 0.59% higher at Rs 1297.30 Monday on the BSE. At that price, the government’s 26.12% stake is worth more than Rs 9,657 crore.
The sale will bring an end to the government's nearly 20-year-old involvement in Tata Comm, formerly known as Videsh Sanchar Nigam Ltd (VSNL).
Panatone<\/a> Finvest and Tata Sons<\/a> hold 34.80% and 14.07%, respectively, in the company. The government, Panatone Finvest and Tata Sons are the promoters of the company. The government's holding was a big hurdle in the company's fundraising plans via equity, which meant it was dependent solely on debt funding to invest in business expansion.
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