Tata Sons Ltd., the holding company for India’s biggest business group, raised $1.38 billion after upsizing its offering of Tata Consultancy Services Ltd. stock, people with knowledge of the matter said.
Tata Sons priced its sale of Tata Consultancy shares at about 2,872 rupees apiece, the bottom of a marketed range, according to the people, who asked not to be identified because the information is private. It sold about 31.3 million shares, after originally offering 28.3 million shares to investors, one of the people said.
Shares of Tata Consultancy, Asia’s largest software developer, fell as much as 5.9% in Tuesday trading. They were down 5.1 percent, headed for the biggest one-day decline in more than three years, at 1:13 p.m. in Mumbai.
Tata Sons will use the proceeds to pay creditors of its wireless division, a person with knowledge of the matter said Monday. Tata sold Tata Teleservices Ltd.’s mobile-phone operations to Bharti Airtel Ltd. last 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. Tata Sons may buy the stakes from other Tata Group affiliates, which would help to reduce cross-shareholdings, according to the person.