Tata Play, formerly Tata Sky, secured approval from India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO) after becoming the first company in the country to use the confidential pre-filing of draft papers option for an initial share sale back in November 2022.
What Happened? The joint venture between Tata Sons and The Walt Disney Company aims to raise around ₹3,000 crore through the IPO, which may include a mix of fresh and secondary share sales. Meanwhile, Tata Motors subsidiary Tata Technologies filed its draft red herring prospectus (DRHP) in March and expects the market regulator’s approval soon. Tata Technologies IPO is anticipated to be around ₹4,000 crore.
After receiving the observation letter, Tata Play must submit an updated draft red herring prospectus (UDRHP-1) before launching the IPO. The updated DRHP must include the observations issued by SEBI and will be accessible to the public.
Confidentially Filed IPO Explained: SEBI’s September 30 circular introduced the pre-filing of offer documents as an alternative to traditional filings for an IPO on the Main Board. This option enables unlisted companies to keep their offer document private until they finalize their IPO plan.
Contrasting with the traditional route, where companies must launch the IPO within 12 months of receiving SEBI’s approval or final observation, the pre-filing route permits companies to float an IPO within 18 months from the date of SEBI’s final comments.
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