TCS plunges over 5% post block deals

NEW DELHI: IT major Tata Consultancy Services (TCS) tumbled over 5 per cent in the opening trade on Tuesday after 3.2 crore shares worth of Rs 8,992 crore traded in block deals on both BSE and NSE.

The stock closed the day 5.22 per cent down at Rs 2,892.45 on BSE.

ET on Monday reported Tata Sons sold a 1.48 per cent stake in the IT services firm to raise Rs 8,127 crore ($1.25 billion) as it looks to retire debt and invest in group firms across sectors such as auto and steel.


Experts are of the view that the proceeds can be used to deleverage the balancesheet 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. Tata Sons also has to repay debt of around Rs 35,000 crore owed by Tata Teleservices, which is now expected to merge with Airtel, industry sources said.