Tata Play Files IPO, Approved By Market Regulator SEBI
The Securities and Exchange Board of India (Sebi) has approved Tata Play proposed public offering. The Tata Group company is the first in India to file secret paperwork for an initial public offering (IPO) with the markets regulator.
Sebi issued an observation letter on the company's pre-filed offer document on 26 April. Tata Play may be the first company in the group to go public in 18 years.
According to market sources, the company, which is a joint venture between Tata Sons and Walt Disney, is looking to earn roughly Rs 3,000 crore through the IPO, which could include both new and secondary share sales.
Tata Technologies, a division of Tata Motors also filed a draught red herring prospectus (DRHP) in March. The market regulator is anticipated to give the corporation the green light soon. The IPO of Tata Technologies is projected to be worth roughly Rs 4,000 crore.
After receiving the observation letter, Tata Play would be required to file an updated draught red herring prospectus (UDRHP-1) before launching the IPO. The amended DRHP will have to include Sebi's observations and will be made public.
An unlisted company can keep its offer document private under the so-called confidential filing or pre-filing option until it finalises its IPO plan.
According to the regulations, the corporation must file an updated DRHP within 16 months of receiving regulatory approval, the validity of which is 18 months.
On 29 November, a month after introducing the confidential route, the direct-to-home platform pre-filed its DRHP confidentially with the Sebi.
After Sebi returned its initial documents, hospitality chain Oravel Stays (OYO) also chose the confidential route for filing new IPO papers. On 31 March, the company filed for pre-filing.
Additionally, the market regulator has approved IdeaForge's IPO plans. On 13 April, Sebi gave an observation letter to India's largest drone manufacturer, paving the way for its public offering. It included a fresh issue of equity shares worth Rs 300 crore and an offer for the sale of 48,69,712 equity shares.
