Experts are of the view that the proceeds can be used to deleverage the balance sheet of Tata Sons, which paid $1.27 billion to Docomo to settle a dispute with the Japanese telecom giant after it exited their joint venture in 2013. Post the share sale, Tata Sons' holding in the IT company would be around 72 per cent.
It will also use the funds to raise its holdings in some listed units, the person said.
Shares of Tata Consultancy, Asia's largest software developer, fell as much as 5.9% in Tuesday trading. At these prices, the total value of shares sold by Tata Sons stands at around Rs 8,900 crore.
When contacted, Tata Sons declined to comment. Last week, Tata Sons said that it will buy a 7-per cent stake in group company Indian Hotels for over Rs1,000 crore on or after 13 March, which will increase its stake from 30 per cent to 37 per cent in the hospitality chain. The price range represents a 4.2 percent to 5.9 percent discount to its last close. Citigroup and Morgan Stanley are managing the TCS share sale, touted to be the biggest block trade this year at over 28 million shares. The latter had to shell out $1.2 billion to NTT DoCoMo past year in order to settle the long-standing dispute with the Japanese telecom giant after it exited their joint venture in 2013.