India proposed raising the minimum public shareholding required in listed companies to 35% from 25%, in a surprise move on Friday that triggered concerns there will be a lot of enforced share sales.
The proposal by Finance Minister Nirmala Sitharaman in a budget speech pushed the stock market down, despite India announcing a tighter fiscal deficit target and lower-than-expected borrowing.
TCS lost nearly ?30,400 crore in market value after Finance Minister Nirmala Sitharaman proposed to increase the minimum public shareholding level for listed companies from 25% to 35%. The IT services company currently has a public float of 28%, with Tata Sons holding the rest. If the proposal is implemented, Tata Sons would need to sell shares worth ?57,000 crore.
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