Tata’s IT arm gears up to face global challenge
After years of speculation, Tata Consultancy Services (TCS), India's largest IT services company, is ready to list on the Indian stock market.
The company, which is a part of the $12 billion Tata group, filed for an initial public offering of the sale of its shares in what promises to be the largest IPO by a private Indian company.
Analysts estimate the size of the offer, which is expected to be in the market in July, to be between Rs550 billion and Rs600 billion ($1.3 billion) priced at between Rs800 and Rs950 a share. Foreign participation in the share issue also appears likely.
The company, India?s largest exporter of IT services and the first IT firm in the country to have posted annual revenues of more than $1 billion, is offering 13% of its post-IPO equity capital (including a greenshoe option) in the Indian stock market, of which about 40% will be new shares. The stake of TCS?s core shareholder, Tata Sons, will fall from 90% to around 81%.
The market capitalization of TCS is expected to be about Rs454 billion or $10 billion, ahead of peers Infosys and Wipro, which have about $7.9