Tata Sons Is Said to Raise $1.38 Billion in Upsized TCS Offering

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.

Tata Consultancy shares were offered at 2,872 rupees to 2,925 rupees each, according to terms for the deal obtained by Bloomberg earlier. An official at Tata Sons declined to comment on the final pricing.

The conglomerate has been planning to raise its ownership over time in five of its largest businesses including Tata Chemicals Ltd. and Tata Steel Ltd., Bloomberg News reported last year. Tata Sons is buying an additional 6.6% stake in Indian Hotels Co. that was held by Tata Trusts, according to a stock exchange filing this month. Last year, it boosted its stake in Tata Motors Ltd., the owner of Jaguar Land Rover.

Citigroup Inc. and Morgan Stanley are arranging the offering of Tata Consultancy stock, according to Monday's terms. The price range represents a 4.2% to 5.9% discount to its last close.

The holding company is also seeking a $1.5 billion offshore syndicated loan, as it seeks to pay down expensive debt at its telecommunications unit, people familiar with the matter said last week. Tata Sons plans to use the proceeds to repay debt of units Tata Teleservices and Tata Teleservices Maharashtra, one of the people said at the time.

— Read Campaign Begins to Woo Investors in India After Successful Mars Spacecraft Launchon ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on Facebook and Twitter.