Govt to exit TCL, erstwhile VSNL, this fiscal

New Delhi, Jan 20 (Agency) The government will sell its existing stake of 26.12 per cent in Tata Communications Ltd (TCL), formerly known as Videsh Sanchar Nigam Ltd (VSN) , through the Offer for Sale and strategic sale in the current fiscal ending March 2021. The Department of Investment and Public Asset Management said a part of the shareholding will be offered through OFS route and the rest if any will be offered to strategic partner Panatone Finvest Limited. The transaction will be completed by March 20, 2021, DIPAM said.

“GoI (Government of India) intends to disinvest its entire shareholding of 26.12 per cent paid up equity capital of TCL, through Offer for Sale (OFS) method of shares by promoters through the stock exchanges and thereafter to the Strategic Partner,” DIPAM said. Panatone Finvest Ltd would be “obliged to buy the offered shares” at the OFS discovered price, it said. VSNL was privatised in 2002 by disinvesting 25 per cent shareholding along with transfer of management control to Panatone Finvest Ltd, the strategic partner.

After the strategic disinvestment, the name of the company was changed to TCL. Tata Communications, promoters hold 74.99 per cent in the company. Of this, the Government of India holds 26.12 per cent stake, while Panatone Finvest has 34.80 per cent and Tata Sons 14.07 per cent. The remaining 25.01 per cent is with the public.