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Tata Sky plans for an IPO

In preparation for an IPO, Tata Group's Direct-to-Home (DTH) company Tata Play has taken the confidential 'pre-filing' route.

Tata Sky plans for an IPO

What's happening: Tata Play, formerly Tata Sky, became the first company to file initial public offering (IPO) documents with the Securities and Exchange Board of India through the confidential 'pre-filing' route.

  • It filed documents with SEBI, BSE, and NSE on November 29.

  • The company has reportedly appointed five investment banks as lead managers and book runners for the proposed IPO: Kotak Mahindra Capital, Bank of America, Citi, Morgan Stanley, and IIFL.

What is it: Companies can use the confidential pre-filing route to submit IPO documents to the regulator without disclosing sensitive business information.

  • Companies can use this option to keep documents out of the public eye until an IPO is officially launched.

  • Companies that take this route must make a public announcement that they have filed the documents with Sebi and stock exchanges in accordance with current pre-filing guidelines.

  • A confidential filing allows a company to file an IPO registration statement privately for regulator review while postponing the public filing until much closer to the IPO date.

Why it matters: Tata Play will become the first Tata group company to go public since the Tata Consultancy Services’ market debut in 2004.

  • Existing investors such as Singapore's Temasek Holdings, Tata Opportunities Fund, and Walt Disney will sell their stakes in the Tata Group as part of the proposed IPO, which will include a new share issue and an offer for sale of existing shares (OFS).

  • While Temasek and Tata Opportunities Fund are expected to withdraw completely from the company, Walt Disney is expected to retain a stake.

By the numbers: Tata Play is looking to raise $300 million, primarily to fund a partial-to-complete exit to partners such as Temasek and Walt Disney, which inherited the stake in the company as part of its global buyout of Rupert Murdoch's 21st Century Fox business.

In short: Tata play, formerly Tata sky would be the first Tata group company to opt for an IPO ever since TCS's stint back in 2004. Further, as it is opting for the pre-filing route, it is subject to additional intrigue.


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