In 2012 Cyrus Mistry acquired the chairmanship of Tata Group. This March he proposed to enter into a process which will a sell part of Tata Sky issue in the first initial public offering (IPO). This issue from the Tata Sky stream is worth 2,000 crore which brings it among the biggest IPO fund-mobilization programmes of the recent times.
Remarkably it is the first best success since Tata Consultancy Services was listed in 2004. Along with this, Tata Sky will proudly be the 30th publicly listed company under the Tata Group tag. It currently has a shared market cap of almost Rs 7.2 lakh crore which is so impressive.
A development manager notified the media that, “Early next week, the company’s investors, management, underwriters and counsels will hold the kickoff meeting to thrash out the red herring prospectus.”
Strong Banks like Kotak Mahindra, Citi, Morgan Stanley, and Capital are set to handle the contribution of India’s leading direct-to-home television service source in which Tata Sons -the holding company of the Tata Group -owns 51%, media mogul Rupert Murdoch’s 21st Century Fox has 30%, Singapore state investor Temasek 10% and Tata Opportunities Fund holds 9%.
By reviving the scheme to set Tata Sky in the list of domestic stock market, Cyrus Mistry will get aided to part-monetize company’s assets. More strength to this plan will be provided by getting fueling funds in order to cut conglomerate’s debts and activate the growth plans.
The other competitors took this step taken by Tata as a signal to utilize the earnings from the share sales to shore up their balance sheets.