InvestorQ : Is the Tata Sky business planning an IPO finally?
rhea Babu made post

Is the Tata Sky business planning an IPO finally?

Riya Dwivedi answered.
3 weeks ago

It looks like finally the IPO of Tata Play Ltd, the new name of Tata Sky, is finally looking to happen. Mostly, the indications are that the filing of the draft prospectus for its initial public offering would happen by the end of the current month. While the details are still awaited, the size of the public offer is expected to be in a range of $300-400 million. It may be recollected that Tata Play had started its services as Tata Sky in the year 2004 as a joint venture between Tata Sons and Rupert Murdoch’s 21st Century Fox.

However, a lot of changes have happened subsequently. Temasek bought 10% from Tata Sons while The Walt Disney Company purchased the entire stake of 21st Century Fox in the company in March 2019. The IPO had started some time back but was put on the back burner after the rebranding exercise took precedence. It is expected that the DRHP would be filed this month. The rebranding from Tata Sky to Tata Play to reflect its expanded television-***-OTT (over-the-top) offerings in combined packages.

The IPO would most likely be an offer for sale *** a fresh issue. The IPO is likely to see Temasek and Tata Capital sell part of their stakes in the company. The company will use the fresh funds to expand its offerings. In FY22, Tata Play had reported a net profit of Rs68.6 crore, almost the same level as the previous fiscal year.