Tata Play readies for an $400 million IPO
Tata Play, previously known as Tata Sky, is likely to file the DRHP for its initial public offering by the end of this month, Mint & Moneycontrol.com reported on September 3 citing sources aware of the development.
The public offer is expected to be in a range of $300-400 million at least
Tata Sky started its services in 2004 as an 80:20 joint venture. The company was a venture between Tata Sons (owning 70 percent of the stake) and Rupert Murdoch’s 21st Century Fox (owning 30 percent). Singapore-based Temasek Holdings purchased 10 percent stake in the company in 2008 from Tata Sons, and The Walt Disney Company purchased 21st Century Fox’s stake in the company in March 2019.
In January this year, Tata Sky, the direct-to-home (DTH) company, rebranded itself as Tata Play to expand its television-cum-OTT (over-the-top) offerings in combined packages.
According to the Sources, Work on the IPO had started last year but was put on the back burner for a while as the markets too started to look difficult in the early part of the calendar year. Now, work on the DRHP has restarted and efforts are in full swing to file the DRHP by end of this month.
The platform has added Netflix to 13 OTT services, including Amazon Prime Video and Disney+Hotstar, as part of its so-called Binge packs.
Through the proposed IPO, the investors, Temasek and Tata Capital may sell part of their stakes in the company, and at the same time, the company also plans to raise money for its use.
Tata Play is a profitable company and has reported a profit of Rs 68.6 crore in 2021-22, compared Rs 68.75 profit in the previous fiscal.
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