Tata Consultancy Services (TCS) witnessed a sharp decline of over 3 per cent during morning trading on Tuesday, triggered by a move from its promoter, Tata Sons, to sell approximately 2.3 crore shares, constituting 0.65 per cent of its equity, through block deals.
The stock of TCS slid by 3.30 per cent to touch Rs 4,015.65 apiece on the NSE, while on the BSE, it dipped by 3.15 per cent to Rs 4,014 per share, significantly impacting the Sensex.
Trading data revealed that over 2.53 crore shares were exchanged on the BSE during the morning session, a substantial increase compared to the two-week average of around 1 lakh shares.
Market analysts attribute the drop in TCS's share price primarily to the stake sale by Tata Sons.
As a consequence of the decline in TCS's share value, the market capitalization of India's premier software company diminished by Rs 45,497.45 crore to reach Rs 14,54,109.37 crore on the BSE.
Tata Sons initiated a block deal aiming to divest up to 2.34 crore shares of TCS at a floor price of Rs 4,001 per share, reflecting a 3.65 per cent discount from the previous day's closing price.
The estimated value of the deal stands at around Rs 9,000 crore.
The official confirmation from both buyer and seller is expected to be disclosed later in the day when the stock exchanges release the data.
As of December 2023, promoters and promoter group entities collectively hold a 72.41 per cent stake in TCS, with Tata Sons alone owning 72.38 per cent of the shareholding.
The 30-share BSE Sensex benchmark plummeted by 622.03 points, or 0.86 per cent, to 72,126.39, while the broader Nifty dropped by 209.40 points, or 0.95 per cent, to 21,846.30. TCS emerged as the biggest laggard on the BSE index.
On the preceding day, TCS's shares concluded nearly 2 per cent lower amidst speculations regarding Tata Sons' potential sale of a minority stake in the IT giant.
Tata Group's stocks have been under scrutiny following a report by Spark Capital in March suggesting that Tata Sons might consider going public by September 2025 to comply with the Reserve Bank of India's (RBI) scale-based regulations.
The RBI mandates that upper-layer Non-Banking Financial Companies (NBFCs) must list on the stock exchanges within three years.
Tata Sons has been identified among 15 upper-layer NBFCs, with a collective market valuation of Rs 31.6 lakh crore. Tata Sons holds ownership in 29 publicly-listed Tata Group entitie
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