The portion reserved for retail investors was subscribed by just 1.46%. Shares of Tata Communications declined almost 6% to close at Rs 1141 on BSE.
The government was initially offering to sell up to 2.85 crore equity shares representing 10% of the total paid up equity capital of the company with a green shoe option of selling 1.74 crore equity shares representing 6.12%.
Post OFS, the government stake in the company will decline from 26.12% to 10%. The government will sell the remaining 10% of its holding in the company to Panatone Finvest, an investment arm of Tata Sons.
The sale will bring an end to the government’s nearly 20-year-old involvement in Tata Comm, formerly known as Videsh Sanchar Nigam Ltd (VSNL).
VSNL was divested in 2002 by the government and the management control of the company was passed on to the strategic partner Panatone Finvest, a special purpose vehicle under the Tata Groups of Companies and a non-deposit-taking core investment arm of Tata Sons.