Modi Govt earned Rs 8,846 crore by selling its entire stake, Tata Group stake rises
By Sanjay Kumar
Tata Communications Ltd is formerly famous as Videsh Sanchar Nigam Limited, it is a $2.9 billion company listed on the Bombay Stock Exchange & National Stock Exchange of the country. The government of India has exited Tata Communications Ltd. by selling a 26% stake in the company for about INR 8,846 crore as part of the disinvestment plan.
Mr Tuhin Kant Pandey (Secretary of DIPAM) said: The disinvestment of the government’s 16.12% stake in Tata Communication was raised by INR 5,457 crore through an offer for sale. Similarly, a 10% stake was sold to a strategic partner for INR 3,389 crore. Thus, the Government of India got a total of INR 8,846 crore from the sale of a stake in Tata Communication.
Shareholding in Tata Communication Ltd.
| Govt. of India | 26.12% |
| Panatone Finvest Ltd. | 34.10% |
| Tata Sons Ltd. | 14.07% |
| Tata Power Company Ltd. | 4.71% |
| Central/ State Govt/President of India | 0.18% |
| Institutions | 18.59% |
| Others | 6.23% |
The government of India’s stake in Tata Communications was 26%, Pantone Finvest’s share was 34% and Tata Sons had 14%. The remaining 25% stake was with the general public through the stock market.
Total 26% Stake Government Selling in Tata Communication
| 16% Stake of Govt. | Investors |
| 10% Stake of Govt. | Pantone Finvest |
Now Indian government has sold its entire 26.12% stake, in which 16.12% stake has been sold in the stock market to investors with the cost of INR 1,161 per share through open for sale 25% of this was reserved for mutual funds and insurance companies.
The rest 10% share is sold by the government to the subsidiary of Tata sons Pantone Finvest, who had already a 34.80% stake in the company, which has now increased to 44%. In this way, the Tata group’s total stake in the company now stands at around 58.87 per cent.
Panatone Finvest Ltd. statement, ” Panatone has obtained 2,85,00,000 equity shares of the face value of INR 10 each of TCL (the target company) represent 10% of total paid-up & issued equity share capital of the Target Company from the country President (as represented by & acting through the Ministry of Communications, Govt. of India) by an off-market transfer of shares on 18 Mar 2021,”.
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