Anil Yadav
Newbie
Tata Sky in talks with private
equity firms to raise up to Rs
1,800 crore post shelving plans
for IPO
MUMBAI: Tata Group's joint
venture DTH company Tata Sky
has initiated talks with bulge
bracket private equity firms to
raise up toRs 1,800 crore ($300
million) after shelving its plans
for an initial public offering
( IPO). The loss-making venture
will use the capital for its
technology upgradation and
expansion, said four people with
direct knowledge of the process.
In 2013, Tata Sky had planned to
list the venture and raise Rs
2,000 crore by selling 25% stake.
It had even shortlisted
investment banks Citigroup
Capital Markets, Morgan Stanley
India Equities and Kotak Mahindra
Capital Co to manage the issue.
Citi and Morgan Stanley have been
retained but now the mandate is
to raise PE funding, a person, who
is a part of the process, said. The
company has been bleeding under
high debt and slower sales pick-
up, and has revised its valuation
expectations after the bankers
didn't get initial demand from
global institutional investors.
"The company will now tap private
equity players who can offer
patient capital and can wait till
the company turns
profitable,"another person said.
"Most of the global investors such
as Bain, Blackstone, Warburg
Pincus, TPG and General Atlantic
have been approached."
ET could not independently verify
these names. Confirming that the
company has shelved its listing
plans, Harit Nagpal, chief
executive officer of Tata Sky in
an SMS response said: "All our
cash requirements have been and
will continue to be met by existing
shareholders."
Data from Capitaline shows that
in 2013-14, at a standalone
basis, the company made a loss of
Rs 280.4 crore on net sales of Rs
3,023.2 crore compared with a
net loss of Rs 378.9 crore on
sales of Rs 2,286 crore recorded
in the previous fiscal. Finacials
for FY15 were not available.
In comparison, Dish TV, Asia's
largest direct-to-home service
operator, has a market
capitalisation ofRs 10,319.56
crore. In FY14-15, it clocked Rs
2,781.64 crore of revenues and a
Rs 796-crore EBITDA and aRs
1.01-crore net profit on a
consolidated basis.
Tata Sky in talks with private equity firms to raise up to Rs 1,800 crore post shelving plans for IPO - The Economic Times
equity firms to raise up to Rs
1,800 crore post shelving plans
for IPO
MUMBAI: Tata Group's joint
venture DTH company Tata Sky
has initiated talks with bulge
bracket private equity firms to
raise up toRs 1,800 crore ($300
million) after shelving its plans
for an initial public offering
( IPO). The loss-making venture
will use the capital for its
technology upgradation and
expansion, said four people with
direct knowledge of the process.
In 2013, Tata Sky had planned to
list the venture and raise Rs
2,000 crore by selling 25% stake.
It had even shortlisted
investment banks Citigroup
Capital Markets, Morgan Stanley
India Equities and Kotak Mahindra
Capital Co to manage the issue.
Citi and Morgan Stanley have been
retained but now the mandate is
to raise PE funding, a person, who
is a part of the process, said. The
company has been bleeding under
high debt and slower sales pick-
up, and has revised its valuation
expectations after the bankers
didn't get initial demand from
global institutional investors.
"The company will now tap private
equity players who can offer
patient capital and can wait till
the company turns
profitable,"another person said.
"Most of the global investors such
as Bain, Blackstone, Warburg
Pincus, TPG and General Atlantic
have been approached."
ET could not independently verify
these names. Confirming that the
company has shelved its listing
plans, Harit Nagpal, chief
executive officer of Tata Sky in
an SMS response said: "All our
cash requirements have been and
will continue to be met by existing
shareholders."
Data from Capitaline shows that
in 2013-14, at a standalone
basis, the company made a loss of
Rs 280.4 crore on net sales of Rs
3,023.2 crore compared with a
net loss of Rs 378.9 crore on
sales of Rs 2,286 crore recorded
in the previous fiscal. Finacials
for FY15 were not available.
In comparison, Dish TV, Asia's
largest direct-to-home service
operator, has a market
capitalisation ofRs 10,319.56
crore. In FY14-15, it clocked Rs
2,781.64 crore of revenues and a
Rs 796-crore EBITDA and aRs
1.01-crore net profit on a
consolidated basis.
Tata Sky in talks with private equity firms to raise up to Rs 1,800 crore post shelving plans for IPO - The Economic Times
