TCS has sold a 30% stake in its South African subsidiary, Tata Consulting Services South Africa (PTY) Limited, to an unnamed South African-based partner for a consideration of approximately ₹28.29 crore (around $3.8 million). This strategic move aims to comply with the local ownership requirements and regulations in South Africa, which demand that at least 30% of a company’s shares be owned by locals.
The divestment is seen as a crucial step to meet the local ownership requirements in South Africa, which would enable TCS to participate in tenders and large-scale contracts. The remaining 70% stake will continue to be owned by Tata Consultancy Services Limited, a global IT consulting company.
The deal is significant as it marks a shift in the company’s global strategy, focusing on localized ownership structures to strengthen its presence in the South African market. The move demonstrates TCS’s commitment to adapting to local regulations and expanding its footprint in key markets around the world.