Tata Sons was offering 28.27 million shares of Asia's largest software developer, or about a 1.48 per cent stake, after the market closed on Monday, according to terms for the deal obtained by Bloomberg.
In 2017, Tata sold Tata Teleservices Ltd's mobile phone operations to the BSE-listed Bharti Airtel Ltd, and had promised to service the unit's debt. While past year Tata Songs boosted its stake in Tata Motors Ltd, the owner of Jaguar Land Rover, it is also planning to buy 6.6 percent additional stakes in Indian Hotels Co. that was held by Tata Trusts.
Tata Sons is expected to use these funds for other group activities, including debt reduction objective.
That would be a discount of 4.2 to 5.9 percent to TCS's Monday closing price of 3,052.15 rupees. Tata Sons plans to use the proceeds to repay debt of units Tata Teleservices and Tata Teleservices Maharashtra, a person said then. The stock dropped 5.22 per cent to end at Rs 2,892.45 on the BSE. They were down 5.1%, headed for the biggest one-day decline in more than three years, at 1:13 p.m.in Mumbai.