The direct broadcast satellite service provider Tata Sky is likely to file for an initial public offering later this month, presumably by the end of September 2022, said sources familiar to the matter.
Two people privy of the matter have stated that the IPO of Tata Sky is likely to range at least between $300-400 million.
Here’s everything you need to know about the development.
Tata Sky Likely to Launch IPO Soon
In August last year, Mint had informed about the Tata Group company discussing plans of going public.
Now, two sources aware of the matter and requesting anonymity have reached out to the publication stating that the company might file a draft prospectus for the initial public offering by the end of Sept 2022.
“Work on the IPO had started last year but was put on the back burner for a while as the company undertook a rebranding exercise and the markets too started to look difficult in the early part of the calendar year. However, work on the draft red herring prospectus (DRHP) was restarted recently and efforts are in full swing to file the DRHP by end of this month,” said one of the sources.
The part of the proposed IPO could see participation of a partial stake sale from Temasek and Tata Capital in the DTH company, while the company will also plan to raise funds for its use.
“Temasek and Tata Capital have been invested in the company for a long time. So they are looking to dilute their holdings. The final quantum of the secondary stake sales is still under discussion. The company will also raise primary capital to invest in growing its businesses in areas beyond DTH, especially broadband,” said another person linked to the matter.
The size of the IPO is expected to be around $300-400 million.
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