Tata Communications surged around 5 percent on the bourses today after CNBC-TV18 reported that the government is planning to divest 26 percent of its residual stake in the firm.
The government's 26 percent stake in Tata Communications is valued at Rs 17,000 crore at current market price and the stake sale is likely to be completed by the first half of calender year 2012.
According to CNBC-TV 18 sources the government has approved the divestment proposal plan and had informed Tata Communications of the same in March 2012. It is also learnt that the government will appoint bankers for the stake sale, the mode of which will be finalised soon.
VSNL was renamed as Tata Communications Ltd after Tata Group acquired a controlling stake in it from the government in February 2008.The government is currently the second-largest stakeholder in the firm, while Tata group firms Tata Sons holds 14.2 percent, Tata Power owns 4.7 percent and Panatone Finvest holds 31.1 percent stake.