Windfall gains for group firms

TCS PUBLIC OFFER

Tata group companies are in for a major windfall if they choose to exit in the initial public offering of software powerhouse Tata Consultancy Services Ltd.

TCS, formerly a division of Tata Sons, the group's holding company will be hived off into a separate entity under Orchid Print.

Tata Sons holds a 90 per cent stake in Orchid Print, which is now renamed as TCS Ltd, and the balance 10 per cent is distributed among other Tata group companies such as Indian Hotels, Tata Chemicals, Tata Steel, Tata Tea, Tata Power and Tata Motors.

The group's hospitality arm Indian Hotels Company, which runs the Taj chain, has already said it is planning to exercise the exit option in the forthcoming TCS IPO.

The company has informed the Bombay Stock Exchange that it intends to divest upto 2 lakh equity shares of Re 1 each held by it in Tata Consultancy Services Ltd as part of the proposed initial public offering of equity shares of Tata Consultancy Services Ltd.

The sale of equity shares shall be at a price discovered through the book building process as per SEBI Guidelines and will be subject to receipt of all necessary statutory and other approvals.