The government is reportedly planning to sell its entire 26.12 per cent stake in Tata Communications. To this end, it has sought bids from merchant bankers. The last day to submit bids is February 3, 2021 and the government is aiming to complete the transaction by March 20, 2021.
As per industry sources, part of the shareholding will be sold through an offer for sale and the remaining will be given to strategic partner – Panatone Finvest Ltd. This will also include leftover from the OFS.
At the current market price, 26.12 per cent stake sale in the telco is expected to bring the exchequer around Rs 84 billion.
The government has set a disinvestment target of Rs 2.1 trillion for FY2020-21, of which Rs 1.2 trillion is to come from minority stake sale in CPSEs and Rs 900 billion is to come from stake sales in state-run financial institutions.