TCS Sells 30% Stake in South African Subsidiary to Comply With B-Bbee Guidelines

Tata Consultancy Services (TCS), India’s largest software exporter, announced on December 20, 2024, that its wholly-owned subsidiary, Tata Consultancy Services (Africa) (Proprietary) Ltd (TCS Africa), has divested a 30% stake in Tata Consultancy Services (South Africa) (Proprietary) Ltd (TCS SA). The move aligns with South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) Act, designed to promote equitable economic participation.

Transaction Details

TCS Africa sold 30% of its shares in TCS SA to the Isisekelo Sethu Trust for ZAR 60.77 million (₹28.29 crore). This strategic transaction ensures compliance with B-BBEE guidelines. The Isisekelo Sethu Trust focuses on uplifting disadvantaged and economically marginalized communities, marking a significant step toward equitable corporate ownership in South Africa.

Impact on TCS SA’s Ownership Structure

Following the agreement signed on December 20, 2024, TCS SA will no longer be a wholly-owned step-down subsidiary of TCS. The 30% stake transfer to the Isisekelo Sethu Trust reflects TCS’s commitment to adhering to local regulations while contributing to community empowerment.

About TCS

Tata Consultancy Services (TCS) is the flagship company of the Tata Group and a global leader in IT services, consulting, and business solutions. With over 50 years of experience, TCS has been a trusted partner for many of the world’s largest businesses, supporting their transformation journeys. Leveraging a consulting-led approach, TCS delivers a comprehensive portfolio of cognitive-powered, integrated business, technology, and engineering services and solutions, driving innovation and excellence across industries. At present, the market capitalisation of TCS Ltd. stands at 14.91 Lakh crores.

TCS Share Performance

As of December 23, 2024, 12:43 PM, the shares of TCS are trading at ₹4,121.75 per share with a decline of 1.08% from its previous day’s closing price. Over the last month, the stock has seen a decline of 4.41%. While over the year the stock has surged by 8.68% the stock has a 52-week high and 52-week low of ₹4,592.25 per share and ₹3,591.50 per share respectively.

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.