Tata Play files confidential papers with SEBI for IPO, becomes first Indian company to do so

Tata Play, previously called Tata Sky, has become the first Indian firm to submit a “pre-filed” draft document, confidential Initial Public Offering (IPO) papers, with regulatory bodies. Tata Sons currently own 62.2 percent in Tata Play. The proposed IPO, which is Tata’s first since the public issue of TCS in 2004, is going to be a mix of fresh issue of shares and an offer for sale (OFS). Existing investors, namely Tata Opportunities Fund, Singapore’s Temasek Holdings, and Walt Disney, which hold the remaining 37.8 percent in the company, are likely to offload their stakes via OFS. The draft red herring prospectus (DRHP) has been pre-filed by the direct-to-home (DTH) platform confidentially with the Securities and Exchange Board of India (SEBI) on 29 November. This concept is popular in the United States, and companies such as Airbnb have followed this route. The Issue of the Capital and Disclosure Requirements was amended by the capital markets regulator last month, introducing the concept of confidential filings to the domestic markets. An unlisted firm is allowed to keep its offer document private until it decides to float its IPO. Tata Play intends to raise Rs 2,000-2,500 crore from the primary market. The offer document of the company will only be open to scrutiny by the regulator and exchanges, but will not be made available to the public. Once SEBI issues its observations and Tata Play decides to float the IPO, the company will have to file an updated DRHP. While two financial investors are going to exit Tata Play completely, joint venture partner Walt Disney will retain some share in the corporation. It currently holds 20 percent in Tata Play, and posted a Rs 69 crore profit on a revenue of Rs 4,741 crore in FY22. It is unlikely that the Tata Sons will offload its share in the IPO. However, as there will be a small component of the fresh issue, it will be diluting its stake in Tata Play. The book value of the company on Tata Sons’ balance sheet stood at Rs 1,259 crore as on 31 March 2022. Tata Play made it clear in a newspaper advertisement that the pre-draft IPO papers does not imply that it will launch the IPO. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.