Tata Communications is having Promoter stake of 74.99%, with Tata holding 48.87%, while Govt of India holding 26.12%. This was old VSNL, which was privatised by NDA government in the year 2002, along with Hind Zinc, having acquired by Vedanta then in 2002.
On Friday, Govt announced to sell 16.12% stake through an OFS in Tata Comm, while 10% stake will be sold to Tata, at a price discovered in OFS, thus Govt. exiting fully from the company. Share price of Tata Comm was ruling at Rs. 1,300 per share, may eventually correct to Rs. 1,000 (at which it was ruling about 1 month back), from now and 2 weeks post OFS. Present M cap of Rs. 36,750 crore, may give Govt about Rs. 9,000 crore of its 26.12% stake.
This hints of similar move being taken by the Govt, in respect to its 29.5% stake in Hind Zinc, which can give Rs. 37.500 crore to Govt (at current rate), with Vedanta, existing promoter in Hind Zinc, holding 65% stake, is seen a keen buyer, of this residual stake of Govt, where Govt is holding stake as Non Promoter.
Govt is showing its iron will and determination to exit from non strategic business, while this theme will be seen catching up further (or seen flying) in FY22. Kudos to Govt.
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