The Hindu Business Line : Tata Sons dilutes over 2% in TCS

Mumbai, July 9 Tata Sons has diluted more than 2 per cent of its holding in group company Tata Consultancy Services (TCS) in the last two quarters, according to provisional data available on the BSE.

Though market men believe that there is nothing for investors to panic, the move might be a part of its bid to raise funds for part financing Tata’s £4.3billion ($8.1billion) takeover of Anglo-Dutch steel firm Corus and to fuel the future inorganic growth aspirations of various group companies.

As on January 2007, Tata Sons held 78.35 per cent stake in the company, which had come down by 2.34 per cent to 76.01. In the first round of sale between January 24 to February 6, the holding company sold off 0.84 per cent or 81.7 lakh shares.

On June 22, the company vended about 1.5 per cent or 50 lakh shares, reducing its holding in TCS to 76.01 per cent.

At various group company AGMs, Mr Ratan Tata, Chairman of the Tata Group, has repeatedly stated that the group is keen to continue with its acquisitive growth strategy.

“Morever, as TCS is the group’s cash cow, it doesn’t really matter for the Tata’s if their holding comes down a trifle,” said Mr Lalit Thakker, Director-Research, Angel Broking. TCS had notched up revenues of Rs 18,685 crore ($4.3 billion) as on March 2007, making it the largest income generator for the Tata Group.

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