Tata Play IPO: First Tata Company to hit the IPO market via the confidential pre-filing route

Tata Play, formerly known as Tata Sky, is the first Tata Group company set out to come up with its IPO via the confidential pre-filing route. Tata Play IPO will be the first IPO of the Tata Group in 18 years after Tata Consultancy Services.

 

 

What is confidential pre-filling route?

Whenever a company wants to file an IPO, they need to submit a document called a prospectus with the SEBI. The prospectus consists of important details regarding the industry, what the company is about, details of selling shareholders and other important details. This document is called DRHP (Draft Red Herring Prospectus).

 

It is called the pre-filling of the IPO, and the company can make necessary changes if they want to in the prospectus. Afterward, the final prospectus is issued by the company, which will be available just before the IPO is up for subscription. This prospectus will have all the final details regarding the IPO issue.

 

In the confidential route, the company will notify regarding the pre-filling of the IPO prospectus but will not disclose the important information which they used to disclose via the normal route.

 

Issuing the IPO via this route will allow the company to submit the prospectus to the regulator without disclosing sensitive information regarding the issue. The company can review how the response is at this stage. by disclosing important information to certain institutional investors and getting their feedback which will enable them to understand whether the pricing or features of the issue makes sense or not to go public.

 

Issuing the IPO via the confidential route also allows the company to retain documents from the public eye and opinion until it is officially launched. IPOs are a good investment avenue in the long term if identified right. To identify the right IPOs for the long term, knowing how to select good stocks for the long term is an important skill.

 

Investing In IPOs pays more dividends to investors in the long term. Therefore, it can be a good investment opportunity for government employees. Know more about Can a government employee invest in the stock market and how.

 

 

 

 

Relevant details regarding Tata IPO

The Direct-To-Home(DTH) service provider filed the documents with the SEBI, National Stock Exchange (NSE), and Bombay Stock Exchange (BSE) on 29th November 2022, whereas the Tata Play IPO date is yet to be announced.

 

With Tata IPO 2022, the group is expecting to raise around 2,000-2,500 crore with existing investors in the company, such as Singapore’s Temasek Holdings, Tata Opportunities Fund, and Walt Disney, which collectively hold 37.8% of the Tata Play to partially or wholly sell their existing shares as part of the proposed IPO, which includes the fresh issue of shares and Offer For Sale (OFS).

 

According to reports, five investment banks will serve as lead managers and book runners for the proposed Tata Play IPO: Kotak Mahindra Capital, Bank of America, Citi, Morgan Stanley, and IIFL. You can also invest in this IPO, but for that, it is mandatory to have a Demat account. Hence, you should have the prerequisite knowledge of how to open a Demat account to enter the world of investing.