Know how the government is ending this relationship with Tata after 20 years
The government will sell a part of its remaining stake in Tata Communications (formerly known as Videsh Sanchar Nigam Limited) in the open market through a sale offer. The rest of the government’s shares will be sold to Panatone Finvest Limited, the investment arm of Tata Sons. The company has given this information. The government currently holds 26.12 percent in Tata Communications, 34.8 percent by Panatone Finvest Limited and 14.07 percent by Tata Sons.
Tata Communications Limited (TCL) said in regulatory information on Friday, “Tata Communications Limited, Panatone Finvest Limited, Tata Sons Pvt. Ltd, and the Government have entered into an amendment agreement between the company to sell its entire shareholding.” Know how the government is ending this relationship with Tata after 20 years…
A share price is around Rs 1290
The government holds 7 crore 44 lakh 46 thousand 885 shares in TCL. According to the last closing price of this share of Rs 1,289.75, the government’s share is worth Rs 9,601 crore. The government will first sell its 4 crore 59 lakh 46 thousand 885 shares, i.e. 16.12 percent stake, through an open offer on the stock exchange. The notice sent to the stock market further states, “Soon after, the government will sell the remaining stake to Panatone.” The sale price will be taken out under this arrangement.
When did VSNL become Tata Communications?
The company has said in the information that the government will not have any stake in Tata Communications on completion of the deal. The government sold a 25 percent stake in Videsh Sanchar Nigam Limited (VSNL), established in 1986, to Panatone Finvest Limited with management control. After this, the name of the company was changed to Tata Communications Limited.
