Zomato IPO to open on July 14 ⁠with shares priced at ₹72-76 apiece

Advertisement
Zomato IPO to open on July 14 ⁠with shares priced at ₹72-76 apiece
Deepinder Goyal, CEO ZomatoBCCL
  • Zomato will 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.
Food 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.

Advertisement
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), the issue will comprise a fresh issue of ₹9,000 crore ($1.2 billion) and offer for sale (OFS or secondary issue) of ₹375 crore by its largest promoter Info Edge. The company has also reserved about 6.5 million shares for the employees. The anchor offer will start on July 13, while the offer will close on July 16 for retail investors.

RHP is a documentation, which is filed with market regulator Securities and Exchange Board of India (SEBI), before hitting the public market. It reveals the IPO date, price and latest financial data.

Advertisement

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.

Advertisement
Both Gupta and Goyal, during the press conference, emphasised that they decided to increase the offer as they had more flexibility from their investors.

Founded 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.

Zomato IPO to open on July 14 ⁠with shares priced at ₹72-76 apiece
Zomato ShareholdingsZomato's DRHP

The company has raised about $2.1 billion to date from marquee investors like Tiger Global Management, ANT Group, Naspers, Glade Brook Capital Partners and others. It was valued at $5.4 billion after its last round raised in February 2021, and is currently valued at around $8.1 billion.
Advertisement


Zomato IPO to open on July 14 ⁠with shares priced at ₹72-76 apiece

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.

Advertisement
SEE ALSO
Zomato investor Info Edge has invested in a drone startup helping Swiggy make deliveries
Cryptocurrencies aren't all diamonds and roses — lawsuits from people who lost big are piling up with exchanges
You can now make money from Flipkart by recommending your favourite products

{{}}