Through the sale of shares in the company's software services division, Tata Consultancy Services, Tata Sons raised the equivalent of $1.1 billion this week. This is the largest block of shares the division has sold since 2018. Shareholders have reportedly raised $7.1 billion from their holdings in India at last count, with the quarter on track to have made the most from block trades.
Block trades are now nearing their best quarter in 14 years, according to a Bloomberg report. “With elections over, there could be another round of block trades or sell-downs. Domestic liquidity and foreign appetite remain very strong for Indian assets,” Rahul Saraf, Citigroup’s India head of investment banking told the agency.
As of the last count, investors' holdings in India had allegedly raised $7.1 billion, and this quarter is expected to have produced the highest profits from block trades.
According to Bloomberg, block transactions are currently approaching their highest quarter in 14 years. "There may be another round of block transactions or sell-downs after the elections. Foreign and domestic demand for Indian assets are still quite high, according to Rahul Saraf, head of Citigroup's investment banking in India, who spoke with the agency. The largest block of Tata Sons' shares since 2018 was raised through the sale of Tata Consultancy Services shares, raising approximately $1.1 billion.
In block agreements, London-based British American Tobacco sold institutional investors a 3.5 percent stake in FMCG giant ITC at an average selling price of Rs 404.40 per share. Roughly Rs 17,500 crore was raised from the equity sale. In order to raise Rs 6,786 crore, co-founder Rakesh Gangwal sold off 6% of InterGlobe Aviation (Indigo) through bulk sales.
In order to raise $469 million, US home appliance major Whirlpool Corp. sold a portion of its ownership in its Indian subsidiary in February. It joined other international companies that were capitalizing on the high valuations of their Indian enterprises. Global funds’ holdings of Indian stocks stood at $763 billion at the end of February, according to data from the National Securities Depository Ltd.
As of the end of February, global funds held $763 billion worth of Indian stocks, as reported by the National Securities Depository Ltd. Despite the froth alert, many investors think India should trade at a bigger premium because of the country's superior growth prospects, favorable demographics, and potential for political stability.
