Zomato’s IPO is Expected soon what you need to know

Zomato has received approval from the Securities and Exchange Board of India (Sebi) to raise $ 8,250 crore through an Initial Public Offering (IPO), including a new share issue in the amount of 7,500 crore and an offer to sell in the amount of £ 750 crore by Info Edge (India) Ltd, according to the draft red herring flyer.

Zomato presented the preliminary documents of the IPO to Sebi in April and received the observation companies necessary for the launch of the IPOs, the follow-up of the public offering (FPO) and the capital increase on July 2nd.

Zomato is expected to launch its IPO at the end of July. Zomato founder and CEO Deepinder Goyal told employees last year that the company plans to launch a first public offering in the first half of 2021.

Apply for Zomato IPO at Zerodha

Zomato IPO Launch Date

India’s biggest food delivery company is going public.

  • Date: 14 Jul 2021 – 16 Jul 2021
  • Price range: 72 – 76
  • Minimum order quantity: 195

Know Everything about the Zomato IPO

Zomato’s IPO could hit the markets on July 19 and the price range is expected to be between 70 and 72 rupees per share, according to a report.

Zomato’s IPO will experience a 10-15% dilution. Much of this will be done through a new share issue and offer to sell (OFS) from its first investor, Info Edge (India) Ltd. Info Edge reduced its OFS size during Zomato’s IPO to 375 million pounds, from 750 million pounds as previously planned.

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Zomato is seeking a $10 billion IPO valuation amid rising online food orders, restaurant reservations and subscriptions to Zomato Pro companies, Mint reported citing two people familiar with the development.

Zomato’s existing investors include Info Edge with 18.55%, Uber BV with 9.13%, Alipay Singapore Holding Pte Ltd with 8.33%, Antfin Singapore Holding Pte Ltd with 8.20%, Tiger Global with 6%, Sequoia Capital with 5.98%, Co-founder of Deepinder Goyal with 5.51%, subsidiary of Temasek Holdings with 3.65 percent among others.

Zomato said he intends to use the proceeds of the IPO to fund organic and inorganic growth initiatives, as well as general corporate goals.

Zomato had an income of 1,367 million rupees in the first three-quarters of FY21 and the expenses were approximately 1,724 million rupees resulting in a loss of 684 million rupees.

Its revenue increased 96% to Rs 2,743 million in the fiscal year ended March 2020, from Rs 1,398 million the previous year.

Zomato’s company will be listed on BSE and NSE.

Zomato raised $ 250 million or more than 1,800 crores in February with funding from Tiger Global, Kora, and others, valuing the online food ordering platform at $ 5.4 billion.

Morgan Stanley India Company Pvt Ltd, Credit Suisse Securities (India) Pvt Ltd, and Kotak Mahindra Capital Company are the global underwriters and principal managers of the issue.

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