New Delhi: Zomato has received Securities and Exchange Board of India’s (Sebi’s) nod to raise ₹8,250 crore through an initial public offer (IPO), which comprises a fresh issue of equity shares worth ₹7,500 crore and an offer-for-sale to the tune of ₹750 crore by Info Edge (India) Ltd, according to draft red herring prospectus. Zomato filed preliminary IPO papers with Sebi in April and received its observation needed by companies to launch IPOs, follow on public offer (FPO) and rights issue on July 2.
Zomato is expected to launch its IPO later in July. Zomato founder and CEO Deepinder Goyal told employees last year that the company was planning to launch an IPO in the first half of 2021.
Here’s all you need to know about Zomato IPO:
1. Zomato IPO may hit markets on July 19 and the price band is likely to be set ₹70-72 per share, according to a report.
2. The Zomato IPO will see a dilution of 10-15 per cent. It will largely be through a fresh issue of shares and an offer for sale (OFS) by its early investor Info Edge (India) Ltd. Info Edge reduced its OFS size in Zomato’s IPO to ₹375 crore from ₹750 crore as planned earlier.
3. Zomato is seeking an IPO valuation of $10 billion amid a surge in online food-ordering, restaurant-bookings and subscriptions for Zomato Pro businesses, Mint reported citing two people familiar with the development.
4. Zomato has said it wants to use the IPO proceeds towards funding organic and inorganic growth initiatives as well as general corporate purposes.
5. Zomato’s existing investors include Info Edge at 18.55 per cent , Uber BV at 9.13 per cent, Alipay Singapore Holding Pte Ltd at 8.33 per cent, Antfin Singapore Holding Pte Ltd at 8.20 per cent, Tiger Global at 6 per cent, Sequoia Capital at 5.98 per cent, co-founder Deepinder Goyal at 5.51% per cent, Temasek Holdings subsidiary at 3.65 per cent among others.
6. Zomato got ₹1,367 crore in revenue in the first three quarters of FY21 and expenses were about ₹1,724 crore, which led to a loss of ₹684 crore. Its revenue grew by 96 per cent to ₹2,743 crore in the year ended March 2020 as compared to ₹1,398 crore in the previous year.
7. Zomato raised $250 million or over ₹1,800 crore in February in funding from Tiger Global, Kora and others, valuing the online food ordering platform at $5.4 billion.
8. Morgan Stanley India Company Pvt Ltd, Credit Suisse Securities (India) Pvt Ltd and Kotak Mahindra Capital Company are the global coordinators and book running lead managers to the issue.
9. Zomato’s company will be listed on BSE and NSE.
10. If launched, Zomato IPO will be among 11 issues expected in July.
(With agency inputs)