India’s most precious food delivery company Zomato is about to hit the Indian market with its much anticipated initial public offering (IPO). Market regulator SEBI officially gave its go-ahead to the food-tech unicorn to boost fund via the general public offering. the corporate in April had filed its draft red herring prospectus (DRHP) with the market regulator, proposing an IPO of ₹8,250 crore.
Zomato is predicted to launch its share sale later this month to become the primary of India’s top unicorns to travel public.
Here’s all you would like to understand about Zomato IPO:
- Zomato is seeking an IPO valuation of $10 billion amid a surge in online food-ordering, restaurant-bookings and subscriptions for Zomato Pro businesses, two people conversant in the event told mint.
- An Economic Times report has said that the Zomato IPO is probably going to hit markets on July 19. It added that the worth band is probably going to be in between ₹70-72 per share.
- The Zomato IPO will see a dilution of 10-15%, largely through a fresh issue of shares and a suggestion purchasable (OFS) by its early investor Info Edge (India) Ltd.
Info Edge reduced its OFS size in Zomato’s IPO by half to ₹375 crore from ₹750 crore as planned earlier. - Zomato wants to use the IPO proceeds towards acquisitions and organic growth plans.
Several large asset management firms and a few existing investors like Temasek might be coming as anchor investors in Zomato’s IPO. - It’s existing investors include Info Edge (18.55%), Uber BV (9.13%), Alipay Singapore Holding Pte Ltd (8.33%), Antfin Singapore Holding Pte Ltd (8.20%), Tiger Global (6%), Sequoia Capital (5.98%), co-founder Deepinder Goyal (5.51%), Temasek Holdings subsidiary (3.65%) and a couple of others.
- It clocked ₹1,367 crore in revenue within the first three quarters of FY21. However, expenses were about ₹1,724 crore, which led to a loss of ₹684 crore Revenue increased by 96% to ₹2,743 crore within the year ended March 2020 from ₹1,398 crore within the previous year.
- Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd and Credit Suisse Securities (India) Pvt Ltd are the worldwide coordinators and book running lead managers to the difficulty .
- BofA Securities India Ltd and Citigroup Global Markets India Pvt Ltd are appointed as merchant bankers to the general public issue. The shares the corporate are going to be listed on BSE and NSE.
Zomato are going to be the primary among India’s mega startups to access public markets. Payment services company Paytm; Flipkart, the e-commerce firm now owned by Walmart Inc.; online insurance platform Policybazaar and cosmetics and garments retailer Nykaa also are readying to travel public.
