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Tata Sky revives IPO plan to raise Rs 2,000 crore

MUMBAI: Tata Sky, the direct-to-
home (DTH) service provider jointly
owned by Tata Sons and 21st Century
Fox, is planning to raise Rs 2,000
crore (Rs 20 billion) through an initial
public offering (IPO). It will be the
third DTH player to list on the stock
exchange, after Dish TV and Videocon
21st Century Fox will most probably
hold on to its stake. The Rupert
Murdoch-controlled company owns
30% stake in Tata Sky.
The IPO will involve a sale of new
shares as well as of existing shares
held by Tata Sons and Temasek,
according to a report by The Times of
Tata Group owns 51% stake in the
company while Temasek Holdings has
10% and Tata Opportunities Fund 9%.
Temasek, which has been holding on to
its investments since 2007, is looking
to encash.
Morgan Stanley, Citi and Kotak
Mahindra Capital will manage the
$300-million IPO, the report said.
Part of the IPO proceeds will be used
to trim debt. Tata Sky’s net debt
stands at around Rs 2000 crore, as of
31 March 2015.
This is not the first time the company
has considered going public. In 2013,
Tata Sky had planned to go public and
had Citigroup Capital Markets,
Morgan Stanley India Equities and
Kotak Mahindra Capital to manage the
issue. It later shelved the plan due to
market conditions.
As reported earlier by
TelevisionPost.com, Tata Sky
marginally reduced its net loss to Rs
267.27crore (Rs 2.67 billion) from Rs
280.41 crore (Rs 2.8 billion) a year
ago. Total income grew 23% to Rs
3,739 crore (Rs 37.39 billion) from Rs
3,040.01 crore (Rs 30.4 billion) a
year ago.
Operating profit saw a 56.7% jump.
Tata Sky’s profit (before
depreciation, finance, tax and prior
period items) stood at Rs 926.74
crore (Rs 9.27 billion) compared to Rs
591.28 crore (Rs 5.91 billion) a year
In FY15, Tata Sky raised Rs 750 crore
(Rs 7.5 billion) through equity and Rs
200 crore (Rs 2 billion) in debt to fund
capex of Rs 1400 crore (Rs 14 billion).
In the fiscal, Tata Sky issued
86,956,530 shares at a premium of Rs
47.50 per share and 41,666,670
shares at a premium of Rs 50 per
The company converted nearly 1.3
million MPEG2 boxes into MPEG4
during the fiscal so as to release
additional capacity and offer more
channels to its subscribers.
As of 31 March 2015, Tata Sky’s
accumulated loss on the balance sheet
stood at Rs 3,729.82 crore (Rs 37.3
In 2015, Videocond2h listed on
Nasdaq. Its market cap touched $1.2
billion on listing. On the other hand,
Essel Group-controlled Dish TV has a
market cap of Rs 8,852.30 crore (Rs
88.52 billion).

Tata Sky revives IPO plan to raise Rs 2,000 crore

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