Tata Play to Finally Launch an IPO

Tata Play, formerly known as Tata Sky, has made regulatory agencies aware of a "pre-filed" draught of its confidential Initial Public Offering (IPO) paperwork. Tata Play is currently 62.2 percent owned by Tata Sons. The proposed IPO, which would be Tata's first since the public offering of TCS in 2004, would combine a fresh share issuance with an offer to buy (OFS). Existing investors that own the remaining 37.8% of the company, including Tata Opportunities Fund, Temasek Holdings in Singapore, and Walt Disney, are likely to sell their shares through OFS. On November 29, the direct-to-home (DTH) platform pre-filed the draught red herring prospectus (DRHP) in a private manner with the Securities and Exchange Board of India (SEBI). Companies like Airbnb have adopted this strategy because it is common in the United States.

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The capital markets regulator revised the Issue of the Capital and Disclosure Requirements last month, bringing the idea of confidential filings to the domestic markets. Until it decides to float its IPO, an unlisted company is permitted to keep its offer document confidential.

To raise Rs 2,000–2,500 crore from the primary market, Tata Play plans to. The company's offer paperwork won't be made public and will only be available for the regulator and exchanges to review. Tata Play will need to submit an amended DRHP after SEBI issues its observations and the business decides to float the IPO.

Tata play ipo date is not released yet, but the IPO will soon be in the market.

Walt Disney, Tata Play's joint venture partner, will keep some stock in the company even if two financial investors would totally withdraw their investments. It presently owns 20% of Tata Play and reported a profit of Rs 69 crore on sales of Rs 4,741 crore in FY22. Tata Sons' share in the is not likely to be sold off. However, it will be reducing its interest in Tata Play because just a small portion of the new issuance will be included.

As of March 31, 2022, the company's book value on Tata Sons' balance sheet was Rs 1,259 crore. In a newspaper ad, Tata Play made it clear that the pre-draft IPO papers do not suggest that it will begin the offering.