The government will sell its entire 26.12 percent stake in Tata Communications Ltd (TCL), erstwhile VSNL, through offer for sale and strategic sale route in the current fiscal. In a notice, the Department of Investment and Public Asset Management (DIPAM) said a part of the shareholding will be offered through OFS and the balance, including any leftover portion in the OFS, will be offered to strategic partner Panatone Finvest Limited.
The transaction is to be completed by March 20, 2021, the DIPAM said. Shares of Tata Communications closed at Rs 1,129.95, up 1.08 percent over the previous close on the BSE. At the current market price, 26.12 percent stake in the firm would fetch the exchequer around Rs 8,400 crore. Public sector VSNL was privatized in the year 2002 by disinvesting 25 percent shareholding along with transfer of management control to Panatone Finvest Ltd, the strategic partner.
Subsequent to the strategic disinvestment, the name of the company was changed to Tata Communications Ltd (TCL). "The GoI (Government of India) intends to disinvest its entire shareholding of 26.12 percent paid-up equity capital of TCL, through Offer for Sale (OFS) method of shares by promoters through the stock exchanges and thereafter to the Strategic Partner," the DIPAM said.