April 29, 2021 11:25 AM
Zomato Limited, which takes orders online and supplies food items, will soon go public. Application forms have been submitted to SEBI for this. It seems that Jomato intends to raise Rs 8,250 crore through the proposed issue.
Demand for this specialty has grown significantly as a result of recent corporate scandals. Swiggy and Zomato compete to increase market share in this segment. It is noteworthy that at a time like this, Zomato is coming to the public issue. Zomato’s revenue doubled to Rs 2,960 crore in 2019-20 compared to 2018-19.
Zomato said it would sell Rs 7,500 crore worth of shares worth Rs 7,500 crore, along with Rs 7,500 crore worth of fresh shares as part of the issue, through an offer for sale.
Food aggregator and delivery service company Zomato on Wednesday filed for up to Rs 8250 crore (nearly $1.1 bn) Initial Public Offer (IPO) with the Securities and Exchange Board of India (SEBI).
As per the Draft Red Herring Prospectus (DRHP) filed by Zomato, the company will offer equity shares comprised of fresh issues of up to Rs 7500 crore and an offer for sale by Info Edge of up to Rs 750 crore. The investor on 27 April had said it will sell its Rs 750 crore shares in the upcoming IPO.
The Lead book-running managers for Zomato IPO consist of Kotak Mahindra Capital, Credit Suisse Securities, BofA Securities India, Citigroup Global Markets India and Link Intime India.
Zomato’s IPO is one of the most awaited IPOs by the investors. The food aggregator is to launch its IPO by Mid-2021. Recently, the food aggregator converted itself from a private company to a public limited company by amending its Memorandum of Association and renaming itself Zomato Limited.