Have you ever been on a roller coaster?
A roller coaster ride is unpredictable. For one moment the carriage carries you and makes you hold your breath.
The next moment, the cart is pushed down. You will wonder if you will survive the fall. Before she could even start thinking, she made it to the bottom and the carriage started climbing up again.
Its movement is very similar to the movement of the stock market in 2022. The stock markets have already taken investors on an exciting journey this year.
After the unpredictability of the stock market, the Indian IPO markets were also dead. Companies that had an IPO Certified by the organizers She chose not to reveal public opinion in times of uncertainty.
However, as Syrma and DreamFolks Services have discontinued their initial public offerings, more companies are looking to go public again.
One such company is Tata Play.
Read on to learn more about Tata Play and Tata group company Planning to enter the public list.
About Tata Play
Founded in 2001 and launched in 2006, Tata Play is one of the leading content distribution platforms in India offering Pay TV and OTT services.
Tata Play was one of the first Direct to Home (DTH) operators to launch dedicated channel packages.
Tata Play, formerly known as Tata Sky, is a joint venture between Tata Sons and TFCF Corporation (owned by Disney) which is India’s leading content distribution platform.
Let us know why Tata Sky has rebranded itself to Tata Play.
From Tata Sky to Tata Play
Most of us remember Tata Sky with her famous song “Tata Sky – isko laga dala to life jinga la la”.
However, at the beginning of 2022, we saw ads showing Saif Ali Khan and Kareena Kapoor Khan saying that Tata Sky is now Tata Play. The company jingle is the same but the company name has changed.
On January 26, 2022, Tata Sky renamed it to Tata Play.
Tata Sky has already had a good position in the direct to home (DTH) business. However, it has expanded its business to even include OTT services in its business.
Hence the company felt the need to change its name. Its past has been identified as the only company that provides DTH services. Hence, to give an identity to its news business, Tata Sky changed to Tata Play.
Tata will play with the IPO soon
The Tata Group has a group of loyal investors, who believe that investing in group shares is always a good thing. These investors were thrilled on Saturday last week.
Leading newspaper Mint said on Saturday that Tata Play is likely to submit a draft prospectus for an initial public offering by the end of this month.
The newspaper added that the size of the bid is likely to range between 300-400 million dollars at least. The source of the information however is unknown.
Tata Play has been looking forward to rolling it out to the public for quite some time now. Mint reported in August 2021 that the company was planning an initial public offering.
However, the plan to rebrand in January 2022 and the gradual death of the initial public offerings in the stock market, pushed the company away from issuing any offer.
The source further informed the mint that work on the draft DRHP had already started at the beginning of the year and that it might be submitted to the regulator by the end of the month.
According to a report, Tata Play has already appointed Kotak Mahindra Bank as lead banker and Cyril Amarchand Mangaldas (CAM), one of India’s largest corporate law firms, to advise on the IPO and subsequent listing.
Disney owns a 30% stake in Tata Play – 20% directly and 9.8% indirectly through the acquisition of TPCF. India is the only country where Disney is interested in a distribution platform.
However, Disney may consider stopping the loading of 10% of Tata Play’s shares.
Tata Play is a leading DTH company. It has the highest market share of 33.2%. Hence it has a very good market position, but has the position turned into positive financial results?
lets take alook.
Tata Play’s financial performance
The 2018-19 and 2019-20 fiscal years will be written in red in the history of the companies’ financial performance.
Tata Play is no exception to this. In the above years, Tata Play has been involved in losses.
However, in the next two years, Tata Play slowly recovered, but not yet reached pre-Covid-19 profit levels.
The total income of Tata Play was 474.4 billion rupees in the fiscal year 2021-22. This is 1% higher than the previous year.
The total net profit for the fiscal year 2021-22 was Rs.686 million in the fiscal year 2021-22. It’s almost the same as last year’s profit.
Even the net profit margin in the two years remained the same.
The company has a negative net worth and a negative debt-to-equity ratio. Hence Tata Play has more liabilities than assets.
In the past five years, its debt levels have remained roughly the same.
Ready Meals for Investment
Tata Play appears to be taking advantage of the changing winds in the IPO markets.
Syrma Technologies and DreamFolks Services, both IPOs saw a good response from the markets.
This week, another public offering was opened. The IPO of Tamilnad Mercantile Bank received a good response today.
Hence, it appears that the Indian IPO markets are finally recovering.
Tata Play has been looking forward to bringing it to the public and now seems like a perfect time. In fact, Tata Play isn’t the only Tata company that went public this fiscal year.
Reportedly, Tata Technologies – an arm of Tata Motors – plans to go public this year.
Hence for investors looking for every move the Tata Group makes, this news could certainly be a big one.
If Tata Play goes public by the end of this month, it will be Tata Group’s first public offering in 18 years. TCS’s last initial public offering was in 2004.
Hence, a conglomerate of large corporations Exiting an initial public offering could be a much-needed boost to the Indian IPO markets.
However, it should be noted that the company’s financial statements paint a poor picture. While losing companies like Zomato and Paytm have offered their IPO fan pool, will Tata Play survive?
To find out more about the Tata Play IPO, stay tuned to the Equitymaster news.
Disclaimer- This article is for informational purposes only. It is not a stock recommendation and should not be treated as such.
This article was published by Equitymaster.com.
(Except for the headline, this story has not been edited by the NDTV crew and is published from a syndicated feed.)