In opening trade on 13 March, the analysts found that the shares of Tata Consultancy Services tumbled over 5 per cent. As soon as the news scattered that 3.2 crore shares worth Rs 8,992 crore traded in block deals on both BSE and NSE, the shares of the company plunges. At that time, the shares were trading at Rs 2,892 apiece.
It was reported that Tata Sons sold a 1.48 per cent stake in the IT services firm to raise Rs 8,127 crore. This was because it seems to retire debt and invest in group firms across sectors like auto and steel.
Analysts believe that the proceeds can be used to deleverage the balance sheet of Tata Sons, which paid $1.27 billion to Docomo to settle a dispute with the Japanese telecom giant after it exited their joint venture in 2013.
It also came into observation that the Tata Sons also has to repay debt of around Rs 35,000 crore owed by Tata Teleservices. This is now expected to merge with Airtel industry.