Indian IT major Tata Consultancy Services (TCS) witnessed a significant decline of over 3 per cent in its shares on Tuesday (March 19), amidst substantial trading activity. About 2.02 crore shares, representing 0.6 per cent equity, changed hands at an average price of Rs 4,043 per share.
The heavy trading activity is speculated to involve Tata Sons, which purportedly offered 2.34 crore shares for sale in India's leading IT service firm. The floor price set for the transaction indicates a 2.6 per cent discount compared to the previous closing price of Rs 4,144.25. Data revealed that the 2.02 crore TCS shares were traded in five separate batches.
At 12.05 pm, TCS shares were trading 3.03 per cent lower at Rs 4,019.10 apiece on the BSE. In the preceding session, TCS shares concluded 1.78 per cent lower at Rs 4,219.25 on the NSE.
With a market capitalisation of Rs 15 lakh crore, TCS retains its position as India's second most-valued listed company. As of December 31, 2023, promoters maintained a 72.41 percent stake, with Tata Sons holding 72.38 per cent and the remaining being held by Tata Investment Corporation.
Sharekhan has issued a "buy" recommendation for TCS shares with a target price of Rs 4,750, citing the company's robust domain expertise and expansive geographical presence. Sharekhan highlights TCS' capability to capitalise on opportunities in cost optimisation, digital transformation, and emerging technology services.
Notably, Tata Group's stocks have drawn attention following a report from Spark Capital, indicating that Tata Sons might consider going public by September 2025 to comply with RBI's scale-based regulations. The RBI mandates that upper-layer Non-Banking Financial Companies (NBFCs) must list on stock exchanges within three years. Tata Sons, identified among 15 upper-layer NBFCs, may need to adhere to this regulation.
Tata Consultancy Services, valued at nearly Rs 15 lakh crore, stands as the second most valuable firm after the conglomerate Reliance Industries Ltd. Furthermore, Tata Sons commands a total market valuation of Rs 31.6 lakh crore, owning 29 publicly-listed Tata Group entities.