Tata Sons plans to sell the shares in the price range of Rs 2,872-2,925 per share. The stock had hit a high of Rs 2,929 and a low of Rs 2,885.20 so far during the day.
Shares of Tata Consultancy fell as much as 5.9 percent in Tuesday trading. The money raised from the stake sale will be used by Tata Sons to strengthen its balance sheet.
Tata Sons to offload $1bn worth TCS shares. Tata sold Tata Teleservices Ltd.'s mobile-phone operations to Bharti Airtel Ltd. previous year and pledged to pay the unit's obligations.
It will also use the funds to raise its holdings in some listed units, the person said, asking not to be identified because the information is private.
Citigroup and Morgan Stanley are managing the TCS share sale.
This is a discount of around 6 per cent to the closing price of Rs 3051.85 of the TCS scrip on the Bombay Stock Exchange on Monday.
Incidentally, the partial stake sale by Tata Sons in TCS comes at a time when market sentiment vis-a-vis IT services companies have improved as the United States economy picks up even as the sector is expected to witness continued traction on the digital front.
In addition, the holding company is seeking a $1.5 billion offshore syndicated loan, to pay down expensive debt at its telecommunications unit.