Mumbai: Tata Play (previously known as Tata Sky) has become the first Indian company to submit a ‘pre-filed’ draft document (confidential IPO papers) with regulatory bodies. Under this guideline, the company’s IPO papers will not be available for public scrutiny until it decides to launch the IPO. This concept is popular in the US with many companies including Airbnb having followed this route.
Tata Play, in which Tata Sons owns 62.2%, plans to raise Rs 2,500 crore from the primary market in what will be the first IPO from the Tata Group’s stable in close to two decades. The last time the group hit the primary market was through TCS in 2004.
Tata Play submitted the IPO document to Sebi, BSE and NSE on November 30, it announced in a newspaper advertisement. India introduced rules to submit a pre-filed draft IPO document on November 22.
The proposed Tata Play IPO will be a mix of fresh issue of shares as well as an offer for sale (OFS). Existing investors – Singapore’s Temasek Holdings, Tata Opportunities Fund and Walt Disney – which hold the remaining 37.8% in the company are expected to sell their stakes through the OFS.
While the two financial investors will completely exit Tata Play, joint venture partner Walt Disney will retain some share in the company. It currently owns about 20% in Tata Play, which posted a profit of Rs 69 crore on a revenue of Rs 4,741 crore in FY22. Tata Sons is unlikely to sell its shares in the IPO but since there will be a small component of the fresh issue it will dilute its stake in Tata Play.
Tata Play has toyed with the IPO idea several times in the past, though it is the first time it has filed IPO papers with regulatory bodies.
Tata Play, in which Tata Sons owns 62.2%, plans to raise Rs 2,500 crore from the primary market in what will be the first IPO from the Tata Group’s stable in close to two decades. The last time the group hit the primary market was through TCS in 2004.
Tata Play submitted the IPO document to Sebi, BSE and NSE on November 30, it announced in a newspaper advertisement. India introduced rules to submit a pre-filed draft IPO document on November 22.
The proposed Tata Play IPO will be a mix of fresh issue of shares as well as an offer for sale (OFS). Existing investors – Singapore’s Temasek Holdings, Tata Opportunities Fund and Walt Disney – which hold the remaining 37.8% in the company are expected to sell their stakes through the OFS.
While the two financial investors will completely exit Tata Play, joint venture partner Walt Disney will retain some share in the company. It currently owns about 20% in Tata Play, which posted a profit of Rs 69 crore on a revenue of Rs 4,741 crore in FY22. Tata Sons is unlikely to sell its shares in the IPO but since there will be a small component of the fresh issue it will dilute its stake in Tata Play.
Tata Play has toyed with the IPO idea several times in the past, though it is the first time it has filed IPO papers with regulatory bodies.
