Tata Group stocks witnessed a selloff as investors booked profits after parent Tata Sons Pvt. sold shares in Tata Consultancy Services Ltd.
Shares of TCS dropped 4.48% to Rs Rs 3,966.60, the lowest level since Feb. 5, after 2.02 crore shares changed hands in five large trades, according to Bloomberg data. Most Tata Group stocks were trading lower in the range of 0.25%-5.0% as of 2:55 p.m.
The group's market capitalisation fell by Rs 1.02 lakh to Rs 30.09 lakh crore as of 3:13 p.m., according to data on Cogencis.
Investors booked profit as the group's shares had surged up to 19% in the past month on the possibility of an IPO by the parent firm. Investment bank Spark had said Tata Sons could fetch a valuation of Rs 11 lakh crore in an IPO.
Tata Sons planned to divest 0.65% or Rs 9,000 crore stake in the company. The holding company is expected to use the proceeds to reduce debt and shift its non-bank lending businesses to another separate entity to avoid mandatory listing under the Reserve Bank of India's norms.
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