Zomato ipo release date | Zomato ipo apply | Zomato ipo listing date
The
Securities and Exchange Board of India (SEBI) has approved Zomato''s application
for an initial public offering (IPO), paving the way for one of the most
eagerly awaited stock sales in modern history. Zomato IPO is expected to open
on 19th July to 21st July and the price band is expected
to be at Rs 70 per share.
Based on
strong demand from global tech specialist funds and emerging funds, Zomato is
aiming for a $8.7 billion IPO. The restaurant aggregator, which is sponsored by
China Ant Group, has also increased its primary fund raise by 20% to $1.2
billion through the IPO and cut the secondary part, or Offer for Sale (OFS) by
50% to $50 million.
Zomato had
filed a Draft Red Herring Prospectus (DRHP) in which it intended to bring
equity shares worth up to Rs 7,875 crore (almost $1.1 billion). Rs 7,500 crore
will be raised through a new issue, while Rs 375 crore would be raised through
an offer for sale to current investor InfoEdge.
Kora
Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave were among the
investors who contributed $250 million to Zomatos pre-IPO primary fundraise,
which valued the company at $5.4 billion.
Following
that, InfoEdge, one of Zomato''s early investors, reported an increase in its
effective shareholding in the company to 18.4 percent. On July 4, InfoEdge
announced that it is decreasing its stake in Zomato.
This was in
addition to the $660 million primary round it raised in December 2020, with 10
new investors including Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital,
Baillie Gifford, Mirae, and Steadview, at a valuation of $3.9 billion.
Following
the initial COVID-19 shock in March 2020, Zomato reported in September that the
online food delivery space had recovered and even surpassed pre-pandemic levels
in a lot of large pockets across India, as more individuals embraced online
ordering.
The
tailwinds for food delivery businesses are clearly obvious, according to
Deepinder Goyal, Zomatos Co-founder and CEO, who expects the sector'' growth
would accelerate post-mass vaccination. He also stated that the burn rate is
quite low, and that the companys market share is growing in all regions.
Zomato
recorded revenue of Rs 2,486 crore for FY20, despite losses of Rs 2,451 crore
due to the pandemic, which reduced order volumes and dine-out revenue.
Goyal and
Pankaj Chaddah founded the food delivery and restaurant aggregator platform
Foodiebay in 2008, which was rebranded Zomato in 2010.
In the last
two decades, just a few Internet companies have gone public in India. Apart
from Zomato, Paytm, Policybazaar, Nykaa, and Delhivery are also preparing for a
public offering, despite the hype surrounding the US listings of Flipkart and
Freshworks.
Apply for
Zomato IPO at Indira Securities