Zomato’s Rs 9,375-crore IPO is one of the much-talked events in the Indian startup ecosystem. Finally, the company has announced that it will open its public offering on July 14. Zomato has reserved 65 lakh equity shares for its employees. The initial public offer will be active up to July 16.
Zomato IPO
Online food delivery giant Zomato will open its IPO on July 14, as per the details revealed by its red herring prospectus.
the food delivery firm plans to raise Rs 9375 crore from its IPO. Rs 9000 crore is the fresh issuance, while Rs 375 is an offer for sale from Info Edge, the major investor in Zomato.
The company is planning to raise Rs 9,375 crore through its IPO which comprises fresh issuance of Rs 9,000 crore and an offer for sale of Rs 375 crore by shareholder Info Edge.
The food delivery firm has a special consideration for its employees. That is why it has reserved around 65 lakh equity shares for them. Initially offering will continue for 3 days up to July 16.
Till now, Zomato has not released the price band for the public. At 8the the July meeting, Zomato will reveal the amount of share required.
Earlier, Info Edge had plans for an offer of the sale worth Rs 750 crore. But in a recent meeting, Info Edge’s board of directors overturned the earlier decision and approved Rs 375 crore of offer of sale. Info Edge is known for its investment strategies and Naukri.com product.
Last week, Sebi also released no objection on fundraising via IPO.
A pre-IPO fundraise organized by Zomato in Feb helped the organization to reach $250 million. The round was led by key investors including Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave. The financial event also helped the organization reach a valuation of $5.4 billion.
Zomato Growth
Zomato applied for an Rs 8250 crore initial public offering during Q2 of 2021 and filed the required draft red herring prospectus (DRHP) with Sebi. Out of Rs 8250 crore of IPO, the food giant earlier planned for a fresh issue of Rs 7,500 crore and an offer for sale of Rs 750 crore by its existing investor Info Edge.
During the fiscal year ended on March 31, 2020, the online food delivery firm recorded a consolidated loss of Rs 2385.6 crore compared to Rs 1,010.2 crore loss in FY2019. In FY20, the firm also reported a revenue of Rs 2604.7 crore that is almost doubled to Rs 1312 crore in FY19.
During the nine months of 2020 ended on December 31, its Consolidate loss became Rs 682.2 crore and a revenue of Rs 1301.35 crore.
Kotak Mahindra Capital Company, Morgan Stanley India Company, and Credit Suisse Securities (India) will manage the book running lead with global coordinators’ responsibility. BofA Securities India and Citigroup Global Markets India will work in the capacity of book-running lead managers.
