Tata Communications OFS opens Tuesday for institutional investors

Offer for sale (OFS) to divest government’s shareholding in Tata Communications, which was earlier state-owned VSNL, will open Tuesday for institutional investors. The government will sell its 10 per cent stake, with an option to sell an additional 6.12 per cent stake.

The floor price has been set at Rs 1,161, and the sale of 16.12 per cent stake could fetch the government around Rs 5,334 crore.

The offer would open for retail investors on Wednesday. The government holds 26.12 per cent stake in the company.

On Friday, Tata Communications had said that "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 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.” Panatone Finvest is an investment arm of Tata Sons. The price at which the stake would be sold to Panatone would be decided based on the price and number of shares sold in the OFS.