Tata Play may file for IPO this month

Mumbai: Tata Sky, the satellite TV business of the Tata Group, renamed Tata Play Ltd earlier this year, is expected to file the draft prospectus for its IPO by the end of this month, which is likely between $300 million and $400 million at least, said two people familiar with the development, speaking on condition of anonymity.

Tata Sky began operations in 2004 as an 80/20 joint venture between Tata Sons and Network Digital Distribution Services FZ-LLC (NDDS), an entity owned by Rupert Murdoch’s 21 Century Fox. Disney acquired Fox in 2019. Disney owns another 9.8% stake in Tata Sky through TS Investments Ltd, where Fox owned 49%, with Tata holding the rest. In fiscal year 2008, Baytree Investments (Mauritius) Pte Ltd (Bay Tree), a subsidiary of Temasek, acquired a 10% stake in Tata Sky, while in fiscal year 2013, Tata Opportunities Fund and Tata Capital Ltd have acquired a stake in the company. Tata Sons holds a 41.49% stake in the company.

Mint first reported in August 2021 that the company planned to go public.

“Work on the IPO had started last year but was put on the back burner for a while as the company went through a rebranding exercise and markets also started to look tough at the start of the year. calendar year. However, work on the Red Herring Prospectus Project (DRHP) has been restarted recently and efforts are in full swing to file the DRHP by the end of this month,” the first person quoted said. -above.

In January, the Tata Group rebranded Tata Sky as Tata Play to reflect its growing business interests beyond Direct To Home services and help drive greater diversification into allied businesses such as OTT and broadband.

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In a press release announcing the rebranding, Harit Nagpal, Managing Director and Managing Director of Tata Play Ltd, said, “Tata Sky has leveraged its market leadership in its core business to create a streaming ecosystem of content by tackling OTT and broadband. We believe it’s time for a brand identity that resonates beyond our DTH business.”

The proposed IPO will see investors Temasek and Tata Capital sell off some of their stakes in the company, while the company also plans to raise funds for its use.

“Temasek and Tata Capital have invested in the company for a long time. They therefore seek to dilute their holdings. The final quantum of sales of secondary interests is still under discussion. The company will also raise primary capital to invest in growing its business in areas other than DTH, particularly broadband,” the second person quoted above said.

The size of the IPO is expected to be between $300 million and $400 million, he added.

Tata Play reported a slight increase in operating revenue in FY22 to Rs 4,741 crore from revenue of Rs 4,682 crore in FY21. Profits, however, remained stable at Rs68.6 crore in FY22 compared to a profit of Rs68.75 in the prior year.

Tata Play is the company’s largest DTH service provider with a market share of 33.23%. The total number of DTH subscribers in the country stood at 66.9 million at the end of March 31, according to data from the Telecom Regulatory Authority of India.

Emails sent to Tata Play on Friday did not elicit a response.

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