Govt calls for presentation by merchant bankers for Tata Comm OFS on Tuesday
By IANS |
Published on
Mon, Feb 8 2021 12:21 IST |
0 Views
Tata Communications.. Image Source: IANS News
New Delhi, Feb 8 : The Department of Investment and Public Asset Management (DIPAM) has called on the interested merchant banks to make presentations on Tuesday for the selection of a merchant banker-cum-selling broker for disinvestment of the government s entire shareholding in Tata Communications through offer for sale (OFS).
A total of 11 merchant banks are in the fray including Axis Capital, Credit Suisse Securities (India) Private Ltd, Elara Capital (India), Goldman Sachs (India) Securities and ICICI Securities.
Government to exit Tata Communications; may garner around ₹8,000 crore
The consolidated profit after tax of TCL in the December quarter rose 4.28% from a year earlier to ₹309 crore.Premium
2 min read
Share Via
Read Full Story
Government will sell the residual 26.12% stake in Tata Communications Ltd (TCL) to exit the erstwhile Videsh Sanchar Nigam Ltd, partly through offer for sale in the stock market and selling the rest to the Tatas to garner around ₹8000 crore as part of its disinvestment receipts in the current financial year ending 31 March.
“Part of the stake will be sold through OFS and on the discovered price, rest of the stake will be sold to the Tatas. Though how much exactly will be sold through OFS has not been decided yet, the Cabinet Committee on Economic Affairs (CCEA) has approved selling up to 16% stake through OFS and remaining to the Tatas, a finance ministry official said on condition of anonymity.
Shares of Tata Communications plunged over 6 per cent on Wednesday after the government announced to sale its entire 26.12 per cent stake in the company.At 12.10 p.m., its shares were trading at Rs 1,060.65, lower by Rs 69.30 or 6.13 per cent .
×
All eyes are on the BSE Sensex, as it is inching towards 50,000 mark. The SGX Nifty at 14,508 points a gap up opening of about 40 points, even as most Asian markets are trading marginally lower. However, the overnight closing of US stocks presents a positive signal.
The Sensex on Tuesday closed with a gain of 834.0 points at 49398.0 levels, just 600 points away from historical 50,000-landmark; the Nifty gained 240 points at 14521.1 levels while the Nifty futures closed at 14,470.
Going ahead, earnings and global cues would remain on the participants’ radar, said
Ajit Mishra, VP - Research, Religare Broking. Besides, we’re also seeing noticeable buzz across the sectors in run up to Budget. We feel it would be prudent for the markets to spend some time around the current levels, he added.