Zee Media Bureau
New Delhi : Cyrus Mistry,chairman of Tata Group's DTH service provider, Tata Sky, is planning to sell part of Tata Sky in his first initial public offer (IPO). This will be the first IPO move by Chairman Cyrus Mistry since he took the hold over the company in 2012.
Mistry would have done this act in 2013 only but due to poor market condition ,he delayed the process. Hence, the company will use the capital to fuel its growth plans and cut debt. Mistry has acted on the plan to list Tata Sky on the domestic stock market, which will help him to part-monetize the asset by bringing in fresh funds to trim its debt .
Morgan Stanley, Citi and Kotak Mahindra Capital are expected to be the fund managers for the IPO. Presently, Tata Sons holds 51% in the company, with 21st Century Fox having 30% while Singapore's Temasek and Tata Opportunities Fund holds 10% and 9% respectively.
Both Tata Sons and Temasek are looking to encash some of its holding in the company, 21st Century Fox intends to retain its ownership in the company while the Tata Opportunities fund is still undecided whether it wants to sell its stake or not. The report said that next week, discussion will be held in their board meeting where all the members will be present and their consent will be taken on this particular matter.