The app-based food delivery major, in which listed technology company Info Edge holds a substantial stake, aims to raise about Rs 9,375 crore. Of the total issue size, shares worth about Rs 375 crore are in an offer for sale by the tech entity.
On July 2, Zomato received markets regulator Sebi’s nod to launch its IPO. After the listing, the company is eyeing a valuation in the range of $8-10 billion, or about Rs 60,000-75,000 crore, market sources said.
Funds raised by issuing new shares would be used for financing Zomato’s organic and inorganic growth initiatives, and general corporate purposes, the draft papers for IPO had noted.
In the last few days, on the back of strong demand for its shares from large institutional investors, the company has upped the IPO size from about Rs 7,500 crore that was planned earlier. At the same time, InfoEdge has also halved the size of its offer for sale from Rs 750 crore earlier.
During fiscal 2020, Zomato’s revenues had jumped over twofold to $394 million (around Rs 2,960 crore) compared to its year-ago period, while its ebitda (earnings before interest, taxes, depreciation, and amortisation) loss was around Rs 2,200 crore.
Kotak Mahindra Capital Co, Morgan Stanley India, Credit Suisse, BofA Securities India and Citigroup Global Markets India are managing the offering. The shares of the company will be listed on the BSE as well as the NSE.