Tata Sons, the holding company of the Tata Group, executed a significant transaction on Tuesday, reportedly offloading approximately 2.02 crore shares, equivalent to 0.6% equity, in Tata Consultancy Services (TCS) through a block deal. This move promptly led to a 3% decline in TCS shares, settling at Rs 4021.25. The transaction, estimated to be valued around Rs 9,000 crore, transpired at an average share price of Rs 4,043 per share.

The initiative to divest shares was initiated by Tata Sons a day prior, aiming to sell up to 2.34 crore shares of TCS at a floor price of Rs 4,001 per share. This floor price represented a discount of 3.65% compared to the closing price on Monday. JP Morgan and Citigroup acted as joint book-runners for the deal, as indicated by a term sheet. However, the official confirmation of the buyer and seller awaits the release of data by stock exchanges later in the evening.

Tata Sons, holding a substantial 72.38% stake in TCS, a leading Indian software services exporter and the second most valued listed company, endeavors to potentially alleviate debt burdens and explore new ventures, including semiconductor technologies. Moreover, this divestment could serve to circumvent the necessity of Tata Sons’ IPO under Reserve Bank of India regulations, which preclude ‘upper layer’ non-banking finance companies (NBFCs) from stock exchange listings. Upon completion, with an aggregate value reaching Rs 9,362 crore, this block deal is poised to become the second-largest transaction in the Indian market for 2024.