Tata’s 1st IPO In 18 Years Is Launching: Tata Sky IPO (Tata Play) Will Use ‘Pre-Filing’ Route
Tata Play, formerly Tata Sky is now the first company to use the confidential ‘pre-filing’ route offered by the SEBI to file IPO documents with it.
First company to use ‘pre-filing’ route
The confidential pre-filing route allows it to submit documents to the regulator for an IPO without comprising sensitive business information.
Confidential filing allows a company to privately file an IPO registration statement while allowing it to delay the IPO until much closer to the actual date.
The option also gives Tata Play time to make an optimum use of internal and external market conditions.
Not just that but also withhold documents from public scrutiny until an IPO is officially launched.
Other significant achievements
TP filed the documents with SEBI and the National Stock Exchange (NSE) on November 29.
This development is again newsworthy considering that Tata Play will become the first Tata Group company to go public since TCS’ market debut in 2004.
Tata Play intends to raise Rs 2000-2500 crore or approximately $300 million primarily to partial-to-complete exit to partners such as Temasek and Walt Disney.
Those two inherited the stake in the company as part of its global buyout of Rupert Murdoch’s 21st Century Fox business.
Who leaves, who stays
Existing investors are Singapore’s Temasek Holdings, Tata Opportunities Fund and Walt Disney.
They collectively hold 37.8% of the Tata Group company and will sell their stakes as part of the proposed IPO which includes a fresh issue of shares and an offer for sale (OFS).
Temasek and Tata Opportunities Fund are expected to completely exit the company but Walt Disney is likely to retain some stake.
Tata Play has reportedly appointed five investment banks Kotak Mahindra Capital, Bank of America, Citi, Morgan Stanley and IIFL as lead managers and book runners of the proposed issue.
As per guidelines, companies opting for the route need to publicly announce that they have filed the documents with SEBI and stock exchanges.