Tata Play to file DHRP for initial public offering by September end

Various media reports suggest that Tata Play, the broadcasting arm of Tata Group, is planning to file a draft Prospectus of the company with the Securities and Exchange Board of India for its initial public offering in the Indian capital markets. The filing of the draft Prospectus is expected to happen by the end of September.

All companies and business entities planning to launch an initial public offering in the country should make some regulatory filings with the Securities and exchange board of India beforehand. SEBI is the regulator of securities and capital markets in India.

Through the initial public offering, Tata Play is reportedly planning to raise 300 – 400 million dollars.

Individuals who have knowledge about the latest IPO move told Mint that the company has been working on this for more than a year now. The plans for IPO were then delayed as Tata Sky decided to rebrand itself into Tata Play. High volatility in the Indian capital markets also forced Tata Play to delay its plans for an initial public offering.

As the capital markets are showing signs of improvement and the domestic economy is showing remarkable resilience against global inconsistency, the company has again restarted working on IPO plans. Tata Play is expected to file a draft red herring Prospectus for the IPO by the end of this month.

About Tata Sky and rebranding

After its incorporation in 2001, Tata Play (Then Tata Sky) launched its direct broadcasting satellite service in 2006.
What started as a joint venture between Tata Group and 21st Century Fox then witnessed the entry of Temasek Holdings into the shareholders’ panel in 2008. Temasek Holdings purchased 10% of shares of Tata Play from majority shareholder, Tata Group, who at that time owned 80% of the joint venture. The acquisition of 10% was operated through one of the subsidiaries of Temasek in Mauritius, Bay Tree Investments Mauritius Pte Limited.

30% shareholding in Tata Play came under the ownership of The Walt Disney Company in 2019 as Walt Disney completed its acquisition of 21st Century Fox.

Apart from usual services, the company also began offering OTT bundles along with DTH services. This move by the company to foray into allied businesses ended in Tata Sky rebranding itself into Tata Play.

The company also decided to enter into the business of broadband services through Tata Play Fibre.

Both Temasek Holdings and Tata Group which have been shareholders in the entity for a long time are reportedly planning to dilute their shareholding in the DTH service company. Media reports state that both Temasek and Tata are in final discussions regarding the number of shares to be diluted by each party and how much should be placed for IPO.

The capital raised from this highly anticipated IPO will reportedly be utilised to improve infrastructure in businesses related to broadband and OTT.