Tata Play is prepared to be the first Indian company to submit a secret filing to the Sebi for an IPO.
- ByStartupStory | November 14, 2022
According to several sources, Tata Play (formerly Tata Sky) is about to become one of the first Indian companies, if not the first, to submit a private pre-filing of offer documents for an initial public offering (IPO), most likely within the next two weeks. The guidelines on confidential IPO pre-filing, which permit pre-filing without a public announcement to help protect sensitive company information of issuers, are anticipated to be issued by stock market regulator Sebi within the next 7 to 10 days, according to legal experts aware of the development. The Securities and Exchange Board of India (Sebi) has been working to facilitate these filings and was scheduled to discuss the issue at its board meeting on September 30.
According to the individuals cited above, the Tata Group’s direct-to-home (DTH) platform is attempting to raise Rs 2,000–2,500 crore ($300 million approximately), primarily to give a partial to full exit to partners like Temasek and the Walt Disney Company, which inherited their stake in the company as part of its global acquisition of Rupert Murdoch’s Twenty-First Century Fox company.
“The idea is to be ready and be the first off the block once the new confidentiality guidelines come in,” remarked a knowledgeable official who asked to remain anonymous. “For some reason, if it does not, then a normal listing route can be considered.”According to the sources, Tata Play has already appointed Capital, Bank of America, Citi, Morgan Stanley, and IIFL as lead arrangers and guide runners for the proposed subject.
Representatives from Tata Play and Tata Sons declined to comment. Following the current standards, firms that are pre-filing IPOs must publicly announce that they have submitted the necessary paperwork to Sebi and the exchanges. Additionally, the issuer The company must make it clear that pre-filing does not automatically imply that it will continue to hold an IPO.
A confidential filing, as the name implies, enables a company to submit a registration statement for an initial public offering (IPO) to the regulator in private for review, delaying the disclosure of the information to the public until much closer to the actual IPO date.The ability to keep sensitive information hidden from competitors, clients, and employees until much, later on, can help a firm succeed. In some cases, the veil of secrecy even gives the option to revoke a registration statement without informing the wider public.According to the people stated above, the group at Tata Play was forced to take this path because of several regulatory and local legal issues.
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