Tata Play May File For $400 Million IPO This Month

Tata Group had rebranded its Tata Sky as ‘Tata Play’. And now they’re going to launch their IPO worth ₹3,188 Crore this month or in upcoming months.

The Tata group’s Tata Play, formerly known as Tata Sky, is expected to file the draft prospectus for its initial public offering by the end of this month.

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The public offering is anticipated to cost at least $300-400 million, according to the media sources.

Tata Sky rebranded itself to Tata Play in January of this year in order to increase the number of bundled television and OTT services.

2004 saw the launch of Tata Sky as an 80:20 joint venture. The business was a joint venture between Rupert Murdoch’s 21st Century Fox and Tata Sons, who held 70% of the stock (owning 30 percent). 

The Walt Disney Company acquired 21st Century Fox’s share in the business in March 2019, while Singapore-based Temasek Holdings acquired Tata Sons’ 10% investment in the business in 2008.

The company began a rebranding exercise, and the markets also started to look challenging in the beginning of the calendar year, so work on the IPO was put on hold for a while. 

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But recently, work on the draught red herring prospectus (DRHP) was resumed, and plans are well under way to file the DRHP by the end of this month, according to a source cited by Mint.

Tata Sky, a direct-to-home (DTH) provider, changed its name to Tata Play in January of this year to broaden its selection of bundles that mix television and OTT (over-the-top) content.

The platform’s so-called Binge bundles now include Netflix in addition to 13 OTT providers, such as Amazon Prime Video and Disney+Hotstar.

The company intends to generate money through the proposed IPO, and backers Temasek and Tata Capital will reportedly sell a portion of their holdings in the business.

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Compared to the previous fiscal year’s profit of Rs. 68.75 crore, Tata Play reported a profit of Rs. 68.6 crore in FY22.