TATA SKY PLANS IPO

TATA SKY

Tata Sky, provides Direct-to-Home (DTH) television services to viewers in India. The company was incorporated in 2004 and offers a range of media and entertainment options to its customers.Tata Sky's DTH satellite platform offers more than 350 television channels, movies and interactive services for games, learning, recipes, news, chat rooms, etc. It has state-of-the-art digital infrastructure and a retail network that covers more than 36,000 towns in India.

On 9 January 2015, Tata Sky became the first Indian DTH operator to offer 4K set-top-boxes to its consumers.

Company HIstory

Tata Sky was incorporated in 2004 but was launched only in 2006.

Tata Sky was a joint venture between the Tata Group and 21st Century Fox, which owned 70% and 30% stake respectively. 

In 2007, Singapore-based Temasek Holdings

through its arm Bay Tree Investments picked up 10% stake in Tata Sky from the Tata Group.

In 2014-15, Tata Opportunities Fund picked up 9% stake from the Tata Group. TOF was the last to come on board at an estimated valuation of Rs 5,000 crore, which was almost three times the value at which Singapore's sovereign wealth fund Temasek invested to pick up a stake in 2007

In 2013, Tata Sky had planned to list the venture and raise Rs 2,000 crore by selling 25% stake, at a valuation of 8000 crore, but later changed its plan.

Now, its again going for IPO, this time might be serious J

There will be a sale of new shares as well as of existing shares held by promoters including Tata Sons and Temasek, which has remained invested in Tata Sky since 2007. Temasek, said another person, wants to encash some of its holdings in the 12-year-old Tata Sky, which will have a gross profit of Rs 1,000 crore in fiscal 2016. Murdoch's 21st Century Fox intends to retain its ownership, while Tata Opportunities Fund undecided whether it wants to sell a stake in the PO. Tata Sky plans to use the proceeds from the share sale to shore up its balance sheet.

	2009	2010	2011	2012	2013	2014	2015
Income	966.63	1424	1644.55	1925.42	2612.13	3040.01	3739
Expenses	2106.31	2057.36	2092.53	2223.56	2991.06	3320.42	4006.27
PAT	-1139.68	-633.36	-447.98	-298.14	-378.93	-280.41	-267.27

                                                                                                                (Fig: in crores) 

As of March 31, 2015 Tata Sky’s accumulated loss on the balance sheet at 3729.82 crores. In FY14, the company had written off an amount of 1500 crore against the securities premium amount.

In comparison, Dish TV, Asia's largest direct-to-home service operator, has a market capitalisation of Rs 10,319.56 crore. In FY14-15, it clocked Rs 2,781.64 crore of revenues and a Rs 796-crore EBITDA and a Rs 1.01-crore net profit on a consolidated basis.

STATISTICS

In May 2015, there were an estimated 47 million(4.7 crore) DTH customers in India today, which is 36% of the Indian TV households. DTH is adding about 8.5 million customers a year, four times more than cable additions. According to Hong Kongbased consultancy Media Partners Asia, 42% of all TV homes in the world will be on DTH by 2020.

At the end of 2019, the FICCI-KPMG report expects digital cable subscriber and DTH subscriber ratio to be 55:45 with 9.4 crore digital cable subscribers and 7.6 crore DTH subscribers.