Shares of Tata Communications plunged over 6 per cent on Wednesday after the government announced to sale its entire 26.12 per cent stake in the company.
At 12.10 p.m., its shares were trading at Rs 1,060.65, lower by Rs 69.30 or 6.13 per cent from its previous close.
In a notice Department of Investment and Public Asset Management (DIPAM) said that the Centre intends to disinvest its entire shareholding of 26.12 per cent of paid up equity capital in Tata Communications, erstwhile Videsh Sanchar Nigam Ltd (VSNL), through OFS by promoters through the stock exchanges and thereafter to the strategic partner as per SEBI’s norms.
DIPAM has invited proposals from eligible merchant bankers to assist and advise the government in the process.
VSNL, a central public sector enterprise was privatised in 2002 by disinvesting 25 per cent shareholding along with transfer of management control to Panatone Finvest Limited, the strategic partner (SP). Subsequent to the strategic disinvestment, the name of the Company was changed to Tata Communications Limited (TCL). Tata Sons holds 14.07 per cent stake in the company.
On Tuesday, Tata Communications reported a four-fold growth on a year-on-year basis in its consolidated net profit for the quarter-ended December at Rs 309.4 crore. However, compared to the July-September quarter, its net profit was down 19.6 per cent.