Tata Sons to Sell 2.34 crore Shares of TCS via Block Deal

Tata Sons, the promoter of India’s largest software services exporter company Tata Consultancy Services (TCS), has proposed to sell 2.34 crore shares of TCS in block deals valued at approximately Rs 9,300 crore, at a rate of Rs 4,001 per share. The reported price represents a 3.6% discount to today’s closing price of Rs 4144.75 per share on the BSE.

According to the current shareholding pattern, Tata Sons Private Limited, the company’s promoter, holds a majority stake in TCS, which is 72.38%, compared to 72.27% in September 2023.

Citigroup and JPMorgan are the joint bookrunners of the proposed share sale.

Share Performance

At the beginning of the day, the shares of TCS opened at Rs 4217.50 per share on the BSE, reaching intraday highs and lows of Rs 4254.45 and Rs 4116.70, respectively. The shares eventually concluded at Rs 4144.75 per share, representing a decline of 1.72% compared to Friday’s closing price.

The 52-week high of the stock is Rs 4254.45 per share, and currently, the stock is trading approximately 2.60% below its 52-week high price. The stock has delivered around a 30% return in the past year.

The current market capitalisation of TCS stands at Rs 14,99,607 crore. TCS is the second largest company in India after Reliance Industries in terms of market capitalisation.

Financial Performance

In Q3 FY24, TCS reported a revenue of Rs 60,583 crore, representing a year-on-year growth of 4% from Rs 58,229 crore in the same quarter last year. The operating profit of the company stands at Rs 16,388 crore, with an operating profit margin of 27% compared to Rs 15,553 crore in the same quarter last year. The net profit of TCS stood at Rs 11,097 crore in the December quarter, representing a year-on-year growth of around 2% from Rs 10,883 crore. The net profit margin stands at 18% during the quarter.

In terms of ownership, the Promoters hold 72.41% of the company, while Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) hold 12.46% and 10.03%, respectively. Public shareholders hold a 5.03% stake in the company.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.