Zomato IPO to open on July 14 with shares priced at ₹72-76 apiece
Zomatowill float its IPO next week to raise ₹9,375 crore.
- Info Edge will be selling its shares worth ₹375 crore in the company.
- About 65 lakh shares have been reserved for the employees.
AdvertisementFood delivery firm Zomato will be floating its initial public offering (IPO) next week on July 14, to raise ₹9,375 crore ($1.3 billion). The Gurugram-based company has set the offer price for these public shares at ₹72-76 apiece.
Investors can place their bid with a minimum of 1 lot of 195 equity shares. At a price of ₹76 per share, one lot can cost up to ₹14,820. Zomato hosted a press conference on Thursday, July 8, at 12 noon to share more details about their IPO.
The company has announced that they will be valued at a post-issue valuation of ₹64,365 crore ($8.6 billion). The IPO will also leave the food delivery giant with a cash reserve or ₹15,000 crore or $2 billion in the bank, the company’s chief financial officer Akshant Goyal and co-founder Gaurav Gupta said.
The duo also emphasised that the raise from the funds will primarily be used for three factors — organic growth through increased orders, deliveries and more; inorganic growth though investments as well as acquisition; and other corporate purposes.
According to Zomato’s red herring prospectus (
RHP is a documentation, which is filed with market regulator
This is the second document to be filed after the draft red herring prospectus (DHRP), which gives details about the business and seeks approval for public offering.
Zomato’s initial offer was to raise ₹8,250 crore ($1.1 billion) through this IPO. The company’s DRHP, filed on April 28 this year, noted that the issue would include a fresh issue of ₹75,000 crore.
Info Edge, who owns about 18.7% stake in Zomato, was scheduled to offload shares worth ₹750 crore. However, it revised the offer earlier this week.
Both Gupta and Goyal, during the press conference, emphasised that they decided to increase the offer as they had more flexibility from their investors.
AdvertisementFounded in 2008 by Deepinder Goyal and Pankaj Chaddah, Zomato is completing its thirteen year this month. Over the last 13 years, the company has marked its presence in every continent, except Antarctica, through acquisitions and its subsidiaries.
The company has raised about $2.1 billion to date from marquee investors like
Zomato had reported a revenue of ₹1,367 crore in the first three quarters of financial year 2021 (till December 2020). Its losses were cut to ₹684 crore compared to ₹2,362 crore in FY20.
Zomato investor Info Edge has invested in a drone startup helping Swiggy make deliveries
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