Tata Play gets SEBI approval to float IPOs

Tata Play, formerly known as Tata Sky, has secured SEBI's approval to move ahead with its IPO plan. Additionally, the regulator has also allowed IIT Bombay alumni-founded drone startup ideaForge Technology to raise funds via IPO.  

Last year in December 2022, Tata Play became first Indian company to opt for confidential pre-filing of draft papers option for an IPO. It obtained the regulator's observation letter on April 26. ideaForge Technology, which filed its preliminary papers with the regulator in February this year, got its observation letter on April 13, an update with SEBI showed on Tuesday. 

According to experts, under the pre-filing route, there is no pressure on the company to go for an IPO. Moreover, unlike the traditional route where companies have to launch the IPO within 12 months from the SEBI approval, or final observation, in the pre-filing route, an IPO can be floated within 18 months from the date of SEBI's final comments. 

This route also provides flexibility to change the primary issue size by 50% till the Updated Draft Red Herring Prospectus stage. Going by the draft papers, ideaForge Technology's public issue comprises a fresh issue of equity shares worth Rs 300 crore and an offer for sale of 48,69,712 equity shares by one of the promoters and existing shareholders.