The central government initiative of the offer for sale (OFS) of equity in Tata Communications Ltd (TCL) today got warm welcome by investors as it witnessed 1.36 times oversubscription. Today, the OFC was available only for non-retail investors while the retail investors would be allowed to bid tomorrow, which is the second and last day of the sale.

For the non-retail section the indicative price of the share is 1183.66 rupees while the last traded price (LTP) is 1213 rupees per share. 
According to the official Twitter handle of Secretary, Department of Investment and Public Asset Management (DIPAM), the government would divest 10 percent shares in TCL, along with an "additional 6.12 percent as Green Shoe Option. A green-shoe option is an over-allotment option in which a company can sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected.

Currently, the government holds 26.12 percent stake in TCL, while 34.8 percent stake is held by Panatone Finvest Ltd, and 14.07 percent is owned by Tata Sons. Erstwhile TCL was known as Videsh Sanchar Nigam Limited (VSNL). The company's name was changed to TCL in 2002 when the government divested its 25 percent stake.