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Friday, December 2, 2022

Tata Play is the company's first initial public offering (IPO) since TCS went public in 2004

Tata Play: 1st IPO from Tatas since TCS listing in 2004


Mumbai:The first Indian company to submit a "pre-filed" draft document—confidential IPO papers—to regulatory bodies was Tata Play, formerly known as Tata Sky.The company's IPO papers will not be made public until it decides to launch the IPO in accordance with this rule.In the United States, many businesses, including Airbnb, have adopted this strategy.

In what will be the Tata Group's first initial public offering (IPO) in close to two decades, Tata Play, which is owned by Tata Sons, intends to raise Rs 2,500 crore from the primary market.The company last entered the primary market in 2004 through TCS.

On November 30, Tata Play made the announcement in a newspaper advertisement that it had submitted the IPO document to Sebi, BSE, and NSE.On November 22, India made it possible to submit a pre-filed draft of an IPO document.

Both an offer for sale (OFS) and a new issue of shares will be part of the Tata Play IPO that is being considered.It is anticipated that existing investors Walt Disney, Tata Opportunities Fund, and Temasek Holdings of Singapore, which hold the remaining 37.8% of the company, will sell their stakes through the OFS.

Walt Disney, a joint venture partner, will keep a portion of Tata Play despite the complete exit of the two financial investors.It currently owns approximately 20% of Tata Play, which earned Rs 69 crore in profit on Rs 4,741 crore in revenue in FY22.Although Tata Sons is unlikely to sell its shares in the IPO, the company's stake in Tata Play will be diluted as a result of a small portion of the new issue.

Although Tata Play has experimented with the idea of an initial public offering (IPO) numerous times in the past, this is the first time the company has submitted IPO paperwork to regulatory authorities.

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