Zomato, the online food delivery platform, is looking to raise Rs 9,375 crore, at the price band of Rs 72-76 per share through an initial public offering (IPO).
The IPO will hit Dalal Street on July 14.
The offer from Zomato will consist of a fresh issue of equity shares and an offer for sale by Naukri.com’s parent company Info Edge. The online food delivery platform is backed by Ant Financials, Info Edge, Sequoia, and Uber.
Zomato’s IPO will have 75 percent of the portion reserved for qualified institutional buyers (QIB) while 15 percent is reserved for non-institutional investors (NII). Only 10 percent of the public issue is open for retail investors to bid, translating to Rs 937 crore.
Investors can bid for the issue in the price band of Rs 72-76 per equity share of face value Re 1. Bids can be made for a minimum of 195 equity shares and in multiples thereafter. The IPO will also have 65 lakh equity shares reserved for employees of the company. Zomato received SEBI’s nod in the previous week.
The food delivery platform will receive Rs 9,000 crore from the IPO. The company will use Rs 6,750 crore for funding organic and inorganic growth initiatives while the remaining will be used for general corporate purposes.
Zomato’s income stood at Rs 2,742 crore in the financial year ending March 2020. Zomato continues to remain a loss-making entity as of now.
Zomato was valued at $5.4 billion in the recent round of fundraising. Tiger Global, Fidelity, and Kora Management were among the latest investors in Zomato pumping in $250 million.
As the company tried to gain more market share and expand operations, volumes are set to increase for Zoamto as well as its rival Swiggy, according to a recent report by CLSA. Profitability has taken a center stage in the industry as both the companies try to improve their unit economics.
