TCS sells 40% stake Sitel India to JV partner Sitel for $17.73 mn

Business Standard reports that Tata Consultancy Services has divested its 40% stake in the BPO firm Sitel India to US-based Sitel Corporation for $17.732 mn. Sitel India is a joint venture between the Tata Group and Sitel Corporation, formed in 2000, with both parties holding 50% of the equity. Tata International, which holds 10% stake in the JV, has also agreed to sell its stake. The joint venture company provides voice-based contact centre BPO services from India. With over 4000 professionals, the JV is a provider of fully integrated customer care and back office processing services operating from five centers in Mumbai, Hyderabad, Chennai and Gurgaon.

Tatas offload 0.84% in TCS for Rs. 1000 crores

Tata Sons, the holding company of the Tata Group, has raised more than Rs. 1000 crores by selling 0.84% of its equity stake in group company and software major Tata Consultancy Services (TCS). This has taken the total amount raised so far to about Rs. 2800 crores (about $622 mn). It is believed that the proceeds could be used for part-funding Tata Steel’s $12.1 bn-acquisition of Corus.

Tata Sons has sold about 8.1 mn equity shares of the software company to an undisclosed buyer. This is the third time in three months that the holding company has diluted its equity stake in TCS, which on December 31, 2006, stood at 78.3%. On February 6, Tata Sons sold 6.9 mn equity shares raising Rs. 900 crores. In a similar transaction in November 2006, Tata Sons raised another Rs. 900 crores by diluting 0.86% of its stake in TCS. A bulk of it was sold to Mauritius-based HSBC Global Investment Fund.

Read the article in The Economic Times.

Tata Consultancy Services to raise funds to hedge forex risk

The Times of India reports that Tata Consultancy Services is planning to raise funds reportedly of around $200 mn to manage risks on its foreign exchange exposure. TCS earns nearly all its income in foreign exchange and volatile exchange rates impact its margins. J P Morgan will be managing the transaction. Citigroup, ABN-AMRO, Standard Chartered and HSBC are in touch with TCS on the same. The exercise is part of TCS' treasury management as it includes significant forex component. The possibilities include of either going in for a forward contract or a mix of forward contract and options.