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Tata Sky likely to raise Rs 2,000 crore through IPO

31 Oct 2012 Evaluate

Putting on offer 25% stake, Tata Group's Tata Sky is planning an initial public offer (IPO) to raise about Rs 2,000 crore at the time of implementation of compulsory digitization in India. Since, the IPO process is at a nascent stage, the owners have begun informal talks with the banks regarding the issue. However, the company is reportedly planning an IPO by the second half of the next calendar year.

Tata Group holds 60% stake in Tata Sky along with Star India at 30% stake and Temasek's Bay Tree Investments holds 10% stake in the company. Moreover, Tata Sky expects a valuation of Rs 8,000 crore when it hits the capital market. Further, its high-end subscriber profile could be a key driver in commanding decent valuations at the time of the IPO.

During the last fiscal, Tata Sky ended with a loss of Rs 298 crore and net sales of Rs 1,590 crore and the accumulated losses stood at Rs 4,303 crore at the end of the last fiscal.

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