The Indian Govt, is on the lookout to raise funds by monetizing non-core assets and in this vein, over the weekend, it stated that it will be selling its entire 26.12% stake in Tata Communications.
The Govt plans to sell 16.12% via an offer-for-sale (OFS) and the remaining stake of 10% will be sold to Tata Sons Pvt.’s investment arm Panatone Finvest, immediately after the OFS.
Panatone Finvest currently owns 34.8% in the company, which will go up to 44.8% and that of Tata Sons will be at 14.1%.
The market is most certainly happy with the Govt getting out of Tata Communication as the stock surged 3% to hit an intraday high at Rs.1328.40. Its 52-week high is at Rs.1365. Market cap stands at Rs.32,255 crore.