Tata Sons to sell up to 23.4 mn TCS shares in a deal worth $1.13 bn

Tata Consultancy Services' stock price closed at Rs 4,152.50 today, it is up 1% on one month and has gone up by 14.92% in six months

Tata Sons, the investment arm of Indian conglomerate Tata Group, will sell shares in IT services unit Tata Consultancy Services (TCS) worth up to Rs 9,362 crore ($1.13 billion) on Tuesday, according to a term sheet seen by Reuters.

Tata Sons plans to offload 23.4 million shares in the country's top IT services provider, representing 0.65 per cent of TCS' outstanding shareholding, according to the term sheet.
 

It holds a 72.4 per cent stake in TCS as of Dec. 31, according to exchange data.
 

The stake sale comes as domestic stock markets hover at record highs, with TCS and the blue-chip Nifty 50 index, of which it is a part, hitting 10 and 15 record highs this year, respectively.
 

TCS shares will be sold at a floor price of Rs 4,001 apiece, a 3.7 per cent discount to its Monday closing price of Rs 4,152.5.
 

JP Morgan and Citigroup will be joint bookrunners for the stake sale.
 

Tata Sons and TCS did not immediately reply to Reuters' requests for comment, while Citigroup and J.P. Morgan declined to comment.
 

Major shareholders of ITC, Paytm and Zomato have sold their stake in the companies via block deals - where more than 500,000 shares are traded in a single transaction - in the past few months.
 

Shares of TCS closed 1.6 per cent lower on Monday ahead of the news, amid a broader tumble in IT stocks.