Loss-making direct-to-home (DTH) operator Tata Sky is planning Rs 2,000 crore ($300 million) initial public offering (IPO) to fund growth plans and reduce debt. The company is expected to break even this financial year after having reported Rs 267 crore loss in 2014-15, reported The Times of India.
The company's investors, management, underwriters and counsels will soon hold a meeting to decide the next steps, the daily cited a source as saying. The 12-year-old direct-to-home television service provider is a joint venture between Tata Sons and 21st Century Fox.
Tata Sons owns 51 percent, while 21st Century Fox holds 30 percent in Tata Sky. Other investors include Singapore state investor Temasek that holds 10 percent and Tata Opportunities Fund which has a 9 percent stake.
The IPO will comprise sale of new shares and offloading of stakes by Tata Sons and Temasek, the TOI report said. While Temasek will be selling a part of its stake, Rupert Murdoch's 21st Century Fox will stay invested.
Meanwhile, fund raising by listed entities through the equity route touched a five-year high of Rs 1 lakh crore (Rs 1 trillion) in the current fiscal, reported the Mint. Second market accounted for about 86 percent, the daily said, citing data from Prime Database, a primary market tracker.
"This year's activity has been fairly diversified with some very large government deals, a fair amount of IPOs (initial public offerings) and large transactions," Mint quoted V. Jayasankar, senior executive director and head of equity capital markets at Kotak Mahindra Capital Co. Ltd as saying.
Some of the major IPOs during the year included those of Coffee Day Enterprises Ltd (Cafe Coffee Day), Interglobe Aviation (owner of private airliner IndiGo), Alkem Labs, Quick Heal, Narayana Hrudayalaya, Dr Path Labs and e-commerce company Infibeam.