Govt's 16.12% share sale in Tata Comm gets 'great response' on day 1

The government's share sale of 16.12 per cent stake in Tata Communications Ltd received "great response" from institutional investors, DIPAM Secretary Tuhin Kanta Pandey said on Tuesday.

"Offer for Sale of Government shares in TCL got great response on Day 1. Issue subscribed 2.19 times of base size at a clearing price above the floor price by non-retail investors. Govt. has decided to exercise the green shoe option," Pandey tweeted.

The issue will open for retail investors on Wednesday.

Public sector firm VSNL was privatised in 2002 by disinvesting 25 per cent shareholding along with transfer of management control to strategic partner Panatone Finvest Ltd.

Subsequent to the strategic disinvestment, the name of the company was changed to Tata Communications Ltd.

As per the shareholding pattern of Tata Communications, the promoters hold 74.99 per cent in the company. Of this, the Government of India holds a 26.12 per cent stake, while Panatone Finvest holds 34.80 per cent and Tata Sons holds 14.07 per cent. The remaining 25.01 per cent is with the public.

The Department of Investment and Public Asset Management (DIPAM) plans to sell its entire stake in TCL in the current fiscal.

As per the disinvestment plan of TCL, 16.12 per cent government shareholding will be offered through the OFS mechanism and the balance, including any leftover portion in the OFS, will be offered to strategic partner Panatone Finvest Ltd.

The government has so far this fiscal mopped up Rs 21,302 crore from CPSE disinvestment. The revised disinvestment target for this financial year has been set at Rs 32,000 crore, substantially lower than the budgeted Rs 2.10 lakh crore.