XSS J12270-4859 is an X-ray binary associated with the Fermi LAT gamma-ray source 1FGL J1227.9-4852. In 2012 December, this source underwent a transition where the X-ray and optical luminosity dropped and the spectral signatures of an accretion disc disappeared. We report the discovery of a 1.69 millisecond pulsar (MSP), PSR J1227-4853, at a dispersion measure of 43.4 pc cm$^{-3}$ associated with this source, using the GMRT at 607 MHz. This demonstrates that, post-transition, the system hosts an active radio MSP. This is the third system after PSR J1023+0038 and PSR J1824-2452I showing evidence of state switching between radio MSP and low-mass X-ray binary (LMXB) states. We report timing observations of PSR J1227-4853 with the GMRT and Parkes, which give a precise determination of the rotational and orbital parameters of the system. The companion mass measurement of 0.17 to 0.46 M$_{sun}$ suggests that this is a redback system. PSR J1227-4853 is eclipsed for about 40% of its orbit at 607 MHz; with additional short-duration eclipses at all orbital phases. We also find that the pulsar is very energetic, with a spin-down luminosity of ~ 10$^{35}$ erg s$^{-1}$. We report simultaneous imaging and timing observations with the GMRT, which suggests that eclipses are caused by absorption, rather than dispersion smearing or scattering.
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