Indian D2H TV-service provider Tata Sky is planning an IPO to raise Rs25bn (US$466.2m), according to the Wall Street Journal.
The company may file a draft prospectus with the Securities and Exchange Board of India as early as next month, said a source…
Indian D2H TV-service provider Tata Sky is planning an IPO to raise Rs25bn (US$466.2m), according to the Wall Street Journal.
The company may file a draft prospectus with the Securities and Exchange Board of India as early as next month, said a source cited in the report.
The upcoming float, which is to raise funds to pay off debt and fund expansion within India, is being managed by Kotak Mahindra Capital, Morgan Stanley and Citigroup, according to the report.
Tata Sky is the second Indian D2H provider said to be planning an IPO in recent months. As SatelliteFinance reported in November, Videocon is seeking to raise US$150m-US$200m from a public offering after failing to sell a stake to private equity last year.
Videocon filed its draft prospectus last month and is expected to list in March, according to local reports.
Foreign ownership rules have recently changed in the country, increasing the maximum share that foreign investors can own in an Indian DTH company from 49% to 74%. It has been suggested that the regulation change is behind the uptake in planned IPOs, as companies anticipate an influx in foreign investment.
India’s satellite broadcasting market has flourished in recent years, thanks to an upwardly mobile population with increasing spending power. Some have tipped the sector as ripe for consolidation due to the high number of operators.
