ReutersThe government will sell a 16.12% stake in through an offer for sale (OFS) and the remaining 10% of its holding in the company to Panatone Finvest, an investment arm of Tata Sons. The sale will bring an end to the government’s nearly 20-year-old involvement in Tata Communications.
The government will sell the 10% stake to Panatone Finvest immediately after the OFS, at the price determined through the offering, Tata Communications said in an exchange filing late on Friday.
Tata Communications’ shares closed 2.65% lower at Rs 1,289.75 Friday on the BSE. At that price, the government’s 26.12% stake is worth more than Rs 9,600 crore.
Panatone Finvest and Tata Sons hold 34.80% and 14.07%, respectively, in the company. The government, Panatone Finvest and Tata Sons are the promoters of the company. The government’s holding was a big hurdle in the company’s fundraising plans via equity, which meant it was dependent solely on debt funding to invest in business expansion.
VSNL was divested in 2002 by the government and the management control of the company was passed on to the strategic partner Panatone Finvest.
The government will sell the 10% stake to Panatone Finvest immediately after the OFS, at the price determined through the offering, Tata Communications said in an exchange filing late on Friday.
Tata Communications’ shares closed 2.65% lower at Rs 1,289.75 Friday on the BSE. At that price, the government’s 26.12% stake is worth more than Rs 9,600 crore.
Panatone Finvest and Tata Sons hold 34.80% and 14.07%, respectively, in the company. The government, Panatone Finvest and Tata Sons are the promoters of the company. The government’s holding was a big hurdle in the company’s fundraising plans via equity, which meant it was dependent solely on debt funding to invest in business expansion.
VSNL was divested in 2002 by the government and the management control of the company was passed on to the strategic partner Panatone Finvest.
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30 Comments on this Story
 | Vinayak Mangla1 day ago Finally Govt has started doing what was to be done earlier. Privatisation has made companies to function more autonomously but still within the laws. You must be thinking that because of privatization companies will start more focus on making profits than welfare of the society but you may hear now and then Government is passing laws in almost every fields, doing amendments to old laws to make all the business unit follow these rules which will actually help the society. Our country for now just need a push and Govt is giving that through PLI scheme which will make interested companies to start working in India or even our Indian companies to diversify. Obviously this will not give any short term returns but after 5-6 years with proper functioning employment will increase drastically and so does per capita income. |
| Ramesh Mutha1 day ago Price for a vaccine in UK is INR 7000-9000, also no free vaccination given in any of the European or American country. Here in India vaccination of millions is already done for free and few have to Just pay INR 150/-. Also under Covax programme, india is giving free vaccine to 25 poor countries as of now. Where does all this money come from my dear Roogees?? Also our country has to give free healthcare and education to millions every year. Money is used for welfare of poor and world class infrastructure development. History says privatisation bought accountability, transpirancy and responsibilities to people to perform. A privatised PSU is quoting 10-20 times the value pre-privatisation. Hence retaining even 30-40 % stake will unlock huge value to government. Above all I'am pleased nobody thought of any mis-appropriation in dis-investments. This govt has a clean 7 year shining and clean and proud Image. |
| Vempati Sarma2 days ago So, this Govt. balances budgets by selling PSu's. Then, what will next Govt. do? Sell land and make people slaves to business Lords? Fast increasing income gap between super rich and poor indicates that. Private employees hardly get any share of the profits. Mostly so called promoters keep when profits are made and when losses are made, ditch both employees and small share-holders stashing away cash in foreign countries. All out of what was tax-payer's money!! |