Tata Sons on Wednesday announced that it has transferred its entire 51.12 per cent equity stake in CMC to group company Tata Consultancy services for Rs 380 crore (Rs 3.80 billion) at Rs 490.5 a share. The transaction price is in line with the prevailing market price on March 29.
The Securities and Exchange Board of India on Monday cleared the share transfer proposal. The market watchdog ruled the transaction as an inter-se transfer, thereby exempting the acquirer TCS from making an open offer to the minority shareholders of CMC.
The deal entailed transfer of 77.44 lakh equity shares (representing 51.12 per cent) of the total paid up capital of CMC.
The mode of sale was off-market transaction on a spot delivery basis executed on March 29, Tata Sons said in a notice to the exchange. TCS, the first Indian software company to touch $ 1 billion revenue, was till recently a division of Tata Sons the group holding company.
It was hived off into Orchid Print, a Tata Sons subsidiary, which was subsequently rechristened TCS. Tata Sons acquired a stake in CMC by participating in the government's disinvestment programme in 2001.
More from rediff