The Indian government is all set to sell over the next two days a tranche of shares, amounting to 16.12 per cent, that it held in Tata Communications (formerly state-owned VSNL).

“ The seller (government of India via DoT) proposes to sell up to 2,85,00,000 Equity Shares of Tata Communications Ltd (representing 10 per cent of the total issued and paid up equity share)… on March 16, 2021 and on March 17, 2021…with an option to additionally sell 1,74,46,885 equity shares (representing 6.12% of the total issued, subscribed and fully paid up equity share capital of the company, Tata Comms),” Tata Communications said in a stock exchange notice yesterday.

The government will sell the stake in Tata Communications through an offer for sale and the rest to Tata Son’s investment arm Panatone Finvest Ltd, according to a regulatory filing.

Currently, the government holds 26.12 per cent stake in Tata Communications, Panatone Finvest Ltd 34.8 per cent and Tata Sons 14.07 percent, respectively.

The government established VSNL in 1986 and divested its 25 per cent stake in 2002 along with transfer of management control to Panatone Finvest Ltd, the strategic partner. Subsequent to the strategic disinvestment, the name of the company was changed to Tata Communications Ltd (TCL).

The floor price of the shares on offer has been set at Rs.1,161 per equity share, according to the notice on BSE notice.

A report filed by PTI last week had, quoting regulatory filings, stated that the government will sell its entire stake in Tata Communications through an offer for sale and the rest to Tata Son’s investment arm Panatone Finvest Ltd.