Tata Sky headed for an IPO

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Tata Group‘s satellite television business, Tata Sky, will reportedly file its IPO prospectus with the Securities and Exchange Board of India (SEBI). The IPO could be launched before the end of this fiscal year.

The proposed IPO’s size may be INR 2,000 to INR 3,000 crore, with a mix of primary capital raising for use in the business and secondary share sales by existing investors.

Work on the draft IPO prospectus is in the final stages and is likely to be filed with the markets regulator by next month. 

As per the Telecom Regulatory Authority of India (TRAI), Tata Sky had a dominant share of the active pay DTH subscribers at 33.03% followed by Dish TV (25.45%), Bharti Telemedia (25.17%), and Sun Direct (16.35%), as of December 2020.

Its active pay DTH subscriber base stood at 70.99 million for the quarter ended 31st December 2020.

Incorporated in 2006, Tata Sky is a joint venture between the Tata Sons and The Walt Disney Company, with Temasek Holdings as a minor partner. It currently offers a total of 601 channels, 495 SD channels, and 99 HD channels and services, along with many other active services.

The IPO will provide an exit to investors, especially Disney, which has been reportedly looking to sell its stake.