Tata Play IPO

As the first Tata Group company to go through the confidential pre-filing route, Tata Play, formerly Tata Sky, has filed for its IPO. After Tata Consultancy Services' IPO 18 years ago, Tata Play IPO will be the first IPO in 18 years for the Tata Group.

What is the confidential pre-filling route?

An IPO requires a prospectus to be filed with SEBI whenever the company wants to go public. An important part of the prospectus is information about the company, its industry, and selling shareholders. The name of this document is DRHP (Draft Red Herring Prospectus).

Pre-filling refers to the process of preparing the IPO prospectus, which the company can modify if necessary. Afterward, the company issues its final prospectus, which will be available for subscription just before the IPO goes live. The prospectus will contain all of the last-minute information on the IPO issue. Through the confidential route, the company will inform the underwriters about the pre-filling of the IPO prospectus but will not share the important information they currently reveal via the normal route.

It is possible to issue a public offering via this route without disclosing sensitive information about the issue to the regulator. The company can evaluate the response at this stage. Announcing important information to certain institutional investors and getting their feedback will help them understand if the pricing or features of the offering make sense or not.

A confidential IPO also allows the company to keep documents hidden from the public eye until it is officially launched. If properly recognized, IPOs are a good long-term investment option. It is important to know how to select long-term stocks in order to identify the best IPOs.

The long-term dividends of investing in IPOs are greater. Government employees can therefore benefit from this investment opportunity.

Relevant details regarding Tata IPO

On November 29, 2022, the Direct-to-Home service provider submitted the necessary paperwork to SEBI, the National Stock Exchange (NSE), and the Bombay Stock Exchange (BSE), but the Tata Play IPO date has not yet been made public.

With the proposed Tata IPO 2022, the group hopes to raise between 2,000 and 2,500 crores by asking current shareholders of the business, including Temasek Holdings of Singapore, Tata Opportunities Fund, and Walt Disney, who together own 37.8% of Tata Play, to sell some or all of their existing shares. The proposed IPO would also include a fresh issue of shares and an offer for sale (OFS).

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