The Securities and Exchange Board of India (Sebi) has given its go-ahead to Tata Play’s proposed public issue, a report by Business Standard informed. Tata Play is the first company in India to file confidential papers with the market regulator for an initial public offering (IPO).
Sebi, on April 26, issued its observation letter on the company’s pre-filed offer document. Tata Play will be the first company from the group to launch an IPO in 18 years, noted the report.
The direct-to-home platform pre-filed its Draft Red Herring Prospectus (DRHP) confidentially with the Sebi on November 29, a month after the introduction of the confidential route, it mentioned.
Market sources told BS that the company, which is a joint venture between Tata Sons and The Walt Disney Company, is eyeing to raise around ₹3,000 crore via the IPO, which can be a mix of fresh and secondary share sales.
It further stated that following the issuance of the observation letter, Tata Play will now have to file an updated draft red herring prospectus (UDRHP-1) before it launches the IPO. However, the updated DRHP will have to incorporate the observations issued by Sebi and will be available to the public, it added.
It is important to note that under the so-called confidential filing or the pre-filing route, an unlisted company is allowed to keep its offer document private until it firms up its IPO plan. According to the norms, the company will have to file an updated DRHP within 16 months from the regulatory approval, the validity of which is 18 months, informed the market daily.
It also stated that Tata Motors subsidiary Tata Technologies, too, filed its DRHP in March. The company is expected to receive a go-ahead soon from the markets regulator and the IPO is expected to be of around ₹4,000 crore, it added.