Tata Communications plunges 6% as government looks to sell entire 26% stake

NEW DELHI: Tata Communications Ltd (TCL) shares fell 6 per cent in Wednesday’s trade after the government said it would sell its entire 26.12 per cent stake in the telecom company, erstwhile Videsh Sanchar Nigam Ltd (VSNL). The government will offload its stake in the ongoing financial year, through offer for sale and strategic sale routes.

The stock fell 6.13 per cent to hit a low of Rs 1,060.60 on BSE. The 26.12 per cent stake in the firm fetched the exchequer around Rs 8,400 crore.

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.