Tata Play filed Confidential IPO with SEBI: Learn detailed analysis with actionable insights

Tata Play IPO – part of Tata Sons Group, filed a confidential IPO with market regulator SEBI for approximately INR 3000 crore initial public offering. The paperwork is confidential. This is the first time a company filed a confidential IPO in India. The Securities and Exchange Board of India (Sebi) received the draught red herring prospectus (DRHP) on November 29, the Tata group company announced through a newspaper ad. The offer document will remain confidential under this optional procedure until the company confirms its IPO plan.

Tata Play IPO consists of both fresh issues and offers for sales (OFS). Temasek Holdings, Tata Opportunity Fund, and Walt Disney are selling their stakes in the company under OFS. These investors own 37.8% of Tata Play. Two financial investors – Temasek Holdings, and Tata Opportunity Fund – will complete existing from the company through OFS in Tata Play. Another promoter, Walt Disney, will retain some portion of its shares. Currently, Walt Disney holds 20% of Tata Play. The promoter group Tata sons will not sell its share in OFS. However, they will dilute some portion in the fresh issue of Tata Play IPO.

Utilization of Net Proceeds from Tata Play IPO 

Tata Play will not receive any amount from the offer for sale. However, the company will enhance its visibility and brand image as well as provide a public market for Equity Shares in India through this IPO.

Utilization of the fresh issue of Tata Play IPO is not announced yet as the company filed a confidential IPO. However, a fresh issue is expected to be used to expand domestically to retain customers. Tata play IPO launch date is not yet announced.

Since the other major players in the market such as Airtel Fiber and Jio Fiber are aggressively expanding their customer base with new services, Tata Play may consider using the fund to strengthen its base.

Tata Play Services and Company Overview

Tata Sons Private Limited and TFCF Corporation have a joint venture in Tata Play Limited. The company is formerly known as Tata Sky Limited.

Tata Play is one of India’s main content distribution platforms offering Pay TV and OTT services. The company was founded in 2001 and began operations in 2006. Tata Play is one of the first Direct to Home providers in India. Tata Play introduced a-la-carte channels, bespoke channel packs, and a variety of other goods and platform services that revolutionized the way its users consumed content.

Tata Play solidified its position in the Direct to Home and OTT platforms through many innovations and improvements over the years. For the first time in India, Tata Play+ introduced PVR – Personal Video Recorder – technology that allows users to pause, record, and rewind content on linear channels in set-top boxes. I remember we used to record cricket matches to watch them at night.

Then the company introduced a Hindi programming guide, video on demand, a DIY video library, and the latest Smart Guide feature to personalize content recommendations on the TV. The company also launched a 4k set-top box and continued to improve the customer experience in watching television.

Tata Play offers its services under the brand name Tata Play Binge +, Tata Play HD, Tata Play+ HD, Tata Play SD, etc. A user can watch it on the television, mobile, as well as on other mediums. The company has invested in advanced digital infrastructure and partnered with global leaders to provide superior technology to users to have a better experience in watching content.

Tata Sons holds a 41.49% stake in Tata Play while Temasek Investments Limited (20%), Network Digital Distribution Services FZ LLC (20%), Baytree Investments (Mauritius) Pte Limited (10%), and Omega FII Investments Pte Limited (7.80%) in FY22 (As of 31st March 2022).

Tata Play IPO: Financial Performance

According to the company’s financial data accessed by the business intelligence platform Tofler, Tata play reported strong growth in revenue in FY22.

• Tata Play reported a profit of Rs 69 crore on revenue of Rs 4,741 crore in FY22 increased by 1.25% from Rs 4,682.21 crore in FY21.
• About 23 million active pay subscribers
• Revenue from the direct-to-home (DTH) segment declined by 0.57% and reached Rs 4,566.68 crore in FY22 from Rs 4,593.01 crore in FY21.
• Broadband services revenue almost doubled to Rs 174.39 crore in FY22 from Rs 89.2 crore in FY21.
• Other income stood at Rs 27.44 crore which is an increase of 21.3% compared to Rs 22.62 crore in FY21.
• Revenue from subscriptions and related services reached Rs 3,982.90 crore in FY22 from Rs 3,919.99 crore in FY21.
• Operating EBITDA from the DTH business rose to Rs 2,008.70 crore from Rs 1,950.95 crore during the same period.
• The company also reduced its operating loss from the broadband business from Rs 88.02 crore in FY21 to Rs 57.75 crore in FY22.
• Tata Play reported a consolidated net profit of Rs 68.6 crore in FY22 compared to Rs 68.75 crore in the previous fiscal.

Tata Play IPO Details

Tata Play IPO Details	Details
Tata Play IPO Launch Date	Coming soon
Tata Play IPO Price band	Coming soon
Tata Play IPO Allotment date	Coming soon
Tata Play IPO Refunds Initiation date	Coming soon
Credit of Shares to Demat Account	Coming soon
Tata Play IPO Listing Date	Coming soon
Fresh Issue	Coming soon
Offer for Sale	Coming soon
Equity Shares outstanding prior to the Offer	Coming soon
Minimum bid (lot size)	Coming soon
Face Value	Coming soon
Listing on	BSE & NSE

Tata Play IPO GMP (Grey Market Premium)

Date	Tata Play IPO GMP	IPO Price

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