SEBI Grants Approval to Tata Play and ideaForge Technology for IPO Launch
- ByStartupStory | May 3, 2023
Tata Play and ideaForge Technology have secured approval from the Securities and Exchange Board of India (SEBI) to raise funds via initial public offerings (IPOs). Tata Play, formerly Tata Sky, became the first Indian firm to use the confidential pre-filing of draft papers option for an initial share sale in December 2022. The company received an observation letter from SEBI on April 26.
According to a recent update from SEBI, ideaForge Technology, which submitted its preliminary papers with the regulator in February 2023, received an observation letter on April 13, indicating its clearance to proceed with the IPO. This option allows the company to launch the IPO at its discretion, without any obligation to do so. Experts explained that the pre-filing route provides companies with flexibility and reduces the pressure to go public.
In contrast to the conventional approach, where companies must launch their IPOs within 12 months of receiving SEBI’s approval or final observation, the pre-filing route enables IPOs to be launched up to 18 months after SEBI’s final remarks. Additionally, this approach allows for a 50% adjustment to the primary issue size until the Updated Draft Red Herring Prospectus (UDRHP) stage, providing further flexibility.
Based on the draft papers, ideaForge Technology plans to issue new equity shares worth Rs. 300 crore and offer for sale (OFS) 48,69,712 equity shares by one of its promoters and current shareholders.
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