The shares of Tata Communications plunged nearly 5 per cent during morning trade on Tuesday as the Union Government fixed the floor price at a steep discount against Monday’s closing price for its stake sale in the company.

At 10:39 am, the stock was trading at ₹1,233.45 on the BSE, down ₹63.85 or 4.92 per cent. It opened at ₹1,206.30 as against the previous day’s close of ₹1,297.30. It hit an intraday high of ₹1,234.00 and an intraday low of ₹1,206.30.

Goldman Sachs, I-Sec to handle govt’s stake sale in Tata Comm

On the NSE, it was trading at ₹1,233.85, down ₹59.95 or 4.63 per cent.

For MFs, insurance companies

The stake sale by the Centre in Tata Communications through an offer-for-sale for non-retail investors opens today at a floor price of ₹1,161 a share. The same will open for retail investors on Wednesday.

Tata Communications: 11 merchant bankers in race for managing Government’s stake sale

The Centre plans to sell 2.85 crore shares (10.00 per cent of the total paid-up equity share capital of the company) through the OFS, which has a green shoe option to sell additional 1.7446 crore shares (6.12 per cent of the total paid-up equity share capital of the company).

Overall, the government plans to sell 4.59 crore equity shares representing 16.12 per cent of outstanding equity shares of the company through OFS.

A minimum of 25 per cent of the offer shall be reserved for Mutual Funds and Insurance Companies, subject to receipt of valid bids at or above the Floor Price, as per the offer document as provided in a regulatory filing by Tata Communications.

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