Zomato files papers for Rs 8,250 cr IPO as Covid lifts food delivery biz
Ant Group-backed online food ordering platform Zomato has filed preliminary papers with capital market regulator Sebi to raise Rs 8,250 crore through an initial share-sale at a time when the demand for its services is growing due to COVID-19 pandemic-related restrictions.
The company's revenue in FY20 jumped over two-fold to around Rs 2,960 crore as compared to 2018-19 fiscal.
The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head-on to grab market share.
The initial public offer (IPO) comprises fresh issue of equity shares worth Rs 7,500 crore and offer for sale to the tune of Rs 750 crore by Info Edge (India) Ltd, draft red herring prospectus (DRHP) filed with Securities and Exchange Board of India (Sebi) showed on Wednesday.
Proceeds from the fresh issue would be used towards funding or
ganic and inorganic growth initiatives; and general corporate purposes.
"Except for Info Edge, which holds 18.55% of the equity share capital of our company as on the date of this DRHP on a fully diluted basis, and Alipay and Antfin, which together hold 16.53% of the equity share capital of our company as on the date of this DRHP on a fully diluted basis no shareholder controls 15 percent or more of the voting rights in our company", the preliminary papers said.
Info Edge on Tuesday said it will sell stake worth Rs 750 crore in the IPO of its investee company Zomato. Info Edge said Zomato is proposing an IPO of its equity shares, comprising a fresh issue of equity shares by Zomato Ltd and an offer for sale by Info Edge (India) Ltd.
"The board of directors of the company considered and have given their approval to the company to participate in the said offer for sale of up to such number of shares of Zomato Ltd as would aggregate upto Rs 7,500 million...," it added.
In February, Zomato had raised USD 250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at USD 5.4 billion.