TCS Stake Sale Update: Tata Group Company To Sell 30% Stake In This Firm - Details

Tata Consultancy Services (TCS) Africa, a wholly owned subsidiary of TCS Limited, has sold 30% of its shares in TCS South Africa (TCS SA) to Isisekelo Sethu Trust. This move complies with South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) guidelines.

The Release noted: 
“ we hereby inform that Tata Consultancy Services Limited (TCS Africa), a wholly owned subsidiary of Tata Consultancy Services Limited and Tata Consultancy
Services (South Africa) (Proprietary) Limited (TCS SA), a step down wholly owned subsidiary of TCS have entered into an agreement with Isisekelo Sethu Trust to sell and dispose off 30% of shares held by TCS Africa in TCS SA to comply with the Broad-Based Black Economic Empowerment guidelines in South Africa”.

Impact on TCS South Africa

Following the transaction, TCS SA will no longer remain a wholly owned step-down subsidiary of TCS Limited. However, the financial impact on TCS Limited is minimal, as TCS SA contributed only 0.39% of the company’s consolidated turnover and 0.12% of its net worth as of March 31, 2024.

About the Buyer

The shares were sold to Isisekelo Sethu Trust, a registered trust in Johannesburg, South Africa. The trust is dedicated to empowering and supporting previously disadvantaged and economically marginalized groups under the B-BBEE Act.

Regulatory Compliance

The sale aligns with SEBI Listing Regulations and TCS’s commitment to regulatory compliance in international markets. Detailed information, including financial metrics and the terms of the agreement, has been submitted as per SEBI guidelines.

Financial Summary of TCS SA

• Turnover (FY 2023-24): ZAR 2,127 million (₹934 crore), 0.39% of TCS’s consolidated revenue.
• Net Worth: ZAR 238 million (₹105 crore), 0.12% of TCS’s consolidated net worth.

This strategic move highlights TCS’s dedication to global compliance and its support for inclusive economic initiatives.