Zomato files papers for ₹8,250 cr IPO
IPO comprises fresh issue of shares worth ₹7,500 cr, ₹750 cr offer for sale by Info Edge
NEW DELHI: Ant Group-backed online food ordering platform Zomato has filed preliminary papers with capital market regulator Securities and Exchange Board of India (Sebi) to raise ₹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 2020-21 jumped over two-fold to around ₹2,960 crore as compared to 2018-19.
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 offering (IPO) comprises fresh issue of equity shares worth ₹7,500 crore and offer for sale to the tune of ₹750 crore by Info Edge (India) Ltd, draft red herring prospectus (DRHP) filed with Sebi showed on Wednesday.
Proceeds from the fresh issue would be used towards funding organic 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% or more of the voting rights in our company,” the preliminary papers said.
Info Edge on Tuesday said it will sell stake worth ₹750 crore in the IPO of its investee company Zomato.
In a regulatory filing, 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 up to ₹7,500 million...,” it added.
In February, Zomato had raised $250 million (over ₹1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at $5.4 billion.
Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Private Ltd and Credit Suisse Securities (India) Private Ltd are the global coordinator and book running lead manager to the issue.
BofA Securities India Limited and Citigroup Global Markets India Private Ltd have been appointed as merchant bankers to the public issue.
The equity shares of the company will be listed on BSE and the National Stock Exchange (NSE).
Last year, Zomato founder and chief executive officer Deepinder Goyal had told employees that the company plans to go for an IPO in the first half of 2021.
ZOMATO’S REVENUE IN 2020-21 JUMPED OVER TWO-FOLD TO AROUND ₹2,960 CRORE AS COMPARED TO 2018-19