Govt. of divest its entire stake in Tata Communications

Tata Communications announced that the company on 12 March 2021 signed an Amendment Agreement between the President of India, Panatone Finvest, Tata Sons and the Company for sale of the entire shareholding in the Company by the Government of India.

The details of the said agreement required are as below:

(i) As on date, the Government of India (Government) holds 7,44,46,885 equity shares of the Company representing 26.12% of the total paid up equity share capital of the Company.

As on date, Panatone Finvest (Panatone) and Tata Sons hold 34.80% and 14.07% respectively aggregating to 48.87% of the total paid up equity share capital of the Company.

As on date, Government, Panatone and Tata Sons are the promoters of the Company.

(ii) As an initial step, the Government will sell up to 4,59,46,885 equity shares forming 16.12% equity shareholding of the Company through an Offer for Sale (OFS) through the stock Exchange Mechanism.

Immediately after the OFS, the Government shall sell the remaining equity shares held by it in the Company to Panatone at the per equity share price arrived at by dividing the aggregate of the product of the number of equity shares sold (under the OFS) and the corresponding price at which such equity share is sold, by the total number of equity shares sold (under the OFS).

Upon completion of aforesaid transactions, Government will cease to be a shareholder of the Company.

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