As per industry sources, the government will sell a 16.12 per cent stake in Tata Communications through an offer for sale (OFS) and the remaining 10 per cent of its holding in the company to Panatone Finvest.
The stake sale to Panatone Finvest will be carried out immediately after the OFS, at the price determined through the offering.
Panatone Finvest and Tata Sons hold 34.80 per cent and 14.07 per cent, respectively, in the company. The government, Panatone Finvest and Tata Sons are the promoters of the company.
As per industry reports, the government’s holding was a big hurdle in the company’s fundraising plans via equity, which meant it was dependent solely on debt funding to invest in business expansion.
