11 service provider bankers in fray for managing govt’s 26.12% stake sale in Tata Communications

Image Source : PTI 11 service provider bankers in fray for managing govt’s 26.12% stake sale in Tata Communications
As many as 11 service provider bankers, together with Goldman Sachs, JM Financial and Axis Capital, are in race for managing the sale of the federal government’s 26.12 per cent stake in Tata Communications Ltd. The authorities will promote its total stake in Tata Communications Ltd (TCL), erstwhile VSNL, via a proposal on the market and strategic sale route by March 20, 2021.

The service provider bankers can be making displays earlier than the officers of the Department of Investment and Public Asset Management on February 9, in keeping with a discover posted on the DIPAM web site.

The different service provider bankers who’re within the fray embrace ICICI Securities, Credit Suisse Securities, IDBI Capital Markets, Kotak Mahindra Capital, SBI Capital Markets, IIFL Securities, Yes Securities and Elara Capital.

Public sector VSNL was privatised in 2002 by divesting 25 per cent shareholding together with switch of administration management to Panatone Finvest Ltd, the strategic accomplice.

Subsequent to the strategic disinvestment, the identify of the corporate was modified to Tata Communications Ltd (TCL).

As per the disinvestment plan of TCL, part of the federal government shareholding might be supplied via OFS mechanism and the stability, together with any leftover portion within the OFS, might be supplied to strategic accomplice Panatone Finvest Ltd.

As per the shareholding sample of TCL, the promoters maintain 74.99 per cent within the firm. Of this, the Government of India holds 26.12 per cent stake whereas Panatone Finvest holds 34.80 per cent and Tata Sons holds 14.07 per cent. The remaining 25.01 per cent is with the general public.

The authorities has thus far this fiscal mopped up Rs 19,499 crore from CPSE disinvestment. The revised disinvestment goal for this monetary 12 months has been set at Rs 32,000 crore, considerably decrease than budgeted Rs 2.10 lakh crore.

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