TCS Share Price Drops on Tata Sons' Planned Sale

TCS Share Price Drops on Tata Sons' Planned Sale

Mar 19 Tech Standard

Shares of Tata Consultancy Services (TCS) fell significantly on Tuesday after news broke about a planned share sale by its major shareholder, Tata Sons. The proposed sale, valued at up to 93.62 billion rupees ($1.13 billion), would involve offering TCS shares at a discounted rate.

The potential discount, with a floor price of 4,001 rupees per share, represents a 3.7% decrease compared to TCS's closing price on Monday. This news triggered a domino effect, causing TCS shares to drop over 3%. The decline in TCS stock price led the blue-chip Nifty 50 index and the Nifty IT index down as well.

Analysts attribute the share price drop to the combination of a discount sale and the use of block deals. While block deals are common practice, the discounted price point has spooked investors. With over 6 million shares already traded, this is TCS's busiest trading session since mid-January.

However, there's a silver lining. The sale is expected to increase the freely available shares of TCS, potentially attracting new investment due to a rise in weightage on major indexes.


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