Tata Sky plans to raise up to $200 mn

Tata Sky a DTH major which is a 80:20 JV between the Tata group and television network Star is considering a second round of funding of $150-200 million and is in conversation with various private equity players such as Providence, Carlyle, Blackstone, Goldman Sachs and Apax Partners.

By law, a DTH operator in India has to be have a minimum holding of 51% by an Indian entity. Singapore-based PE player Temasek had bought about 10% for about $56 million. The valuation of the company in three months has risen more than two-fold.

Tata Sky is looking at diluting about 10% stake. The current holding structure of Tata Sky looks like this: 20% with Star (FDI), 10% with Temasek (FII) and 70% with the Tata’s. Tata Sky’s fund-raising is timed to coincide with the proposed launch of Reliance Communications and Bharti’s DTH operations. In order to face the threat from Reliance and Bharti, Tata Sky needs to ramp up in terms of infrastructure and technology.

Read more in The Economic Times article.

Related Post:
Tatas offload 10% in Tata Sky to Temasek

Tatas offload 10% in Tata Sky to Temasek

The Tata Group has divested 10% stake in its direct-to-home (DTH) venture Tata Sky to the Singapore government's investment arm Temasek for $56 million.

A source close to the development told PTI that the deal was inked almost a month back. Temasek is likely to make a formal announcement in this regard soon. "Temasek has the option to increase its stake further to the permissible limit of 26%," the source said.

With this move, Tatas' stake in the company has come down to 70%.

Incorporated in 2004, Tata Sky started off as a 80:20 joint venture between the Tata Group and television network Star. The DTH service was launched last year.

The joint venture partners had earlier stated that the project cost for the venture would be around Rs 3,000 crore.

Read more in

The Business Standard article.