Food delivery major Zomato has priced its initial public offer (IPO) at Rs 72-76 per equity share. The offer will open on July 14 and close on July 16. Investors can bid for a minimum of 195 Equity Shares and in multiples of 195 thereafter.
The anchor investors will be allotted shares on July 13. The IPO is comprised of a fresh issue of shares worth Rs 9,000 crore and an offer sale of shares amounting to Rs 375 crore. It includes a reservation of 6.5 million shares for employees.
At the top end of the price band, the company could raise Rs 9,375 crore and is valued at Rs 64,365 crore. Zomato's is the largest IPO in 16 months after SBI cards which raised Rs 10,355 crore.
The company plans to utilise the net proceeds from the IPO towards funding organic and inorganic growth initiatives.
Zomato offers a technology platform that connects customers, and restaurants and food deliverers. Customers use the platform to search and discover restaurants, read and write restaurant reviews, order food, book tables and make payments while dining out at a restaurant. The company also runs a procurement service for restaurants called Hyperpure, which supplies ingredients to its restaurant partners.
As of March 31, 2021, Zomato is present in 525 cities in India, with 389,932 Active Restaurant Listings. Since fiscal 2019 the company's mobile application is the most downloaded food and drinks application in India in each of the last three fiscal years. As of financial year (FY), 21 Zomato has its presence in 23 countries outside India.
Kotak Mahindra Capital, Morgan Stanley India and Credit Suisse Securities (India) are the global coordinators and the book running lead managers (GCBRLMs). BofA Securities India and Citigroup Global Markets are the books running lead managers ("BRLMs") to the offer.
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