Zomato fixes price band of Rs 72-76 for Rs 9,375 cr IPO, subscription to open on July 14
New Delhi | Jagran Business Desk: Food delivery platform Zomato on Thursday said it plans to raise Rs 9,375 crore through initial share-sale and will price its initial public offering (IPO) at Rs 72 to 76 per share with the IPO set to open for subscription from July 14 to 16.
Earlier this week, Zomato had received markets regulator Sebi's go-ahead for the initial public offer (IPO). The total IPO size is Rs 9,375 crore, comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer-for-sale to the tune of Rs 375 crore by Info Edge (India) Ltd.
Zomato, which filed preliminary IPO papers with Sebi in April, obtained its observation on July 2, an update with the regulator showed on Monday. Going by the draft papers, proceeds from the fresh issue would be used towards funding organic and inorganic growth initiatives and general corporate purposes.
Bids can be made for a minimum of 195 equity shares and in multiples of 195 equity shares thereafter, the company said in a statement. The offer includes a reservation of up to 65 lakh equity shares for purchase by eligible employees. Being the first food delivery company to pursue a public listing in India, the IPO will be closely watched by investors and is expected to see strong demand.
Besides, not more than 15 per cent of the offer will be available for allocation on a proportionate basis to non-institutional bidders and not more than 10 per cent of the offer will be available for allocation to retail individuals.
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. Zomato's FY20 revenue had jumped over two-fold to USD 394 million (around Rs 2,960 crore) from the previous fiscal, while its earnings before interest, taxes, depreciation and amortization (EBITDA) loss was around Rs 2,200 crore.
For IPOs in India, 2021 has been a strong year with 22 companies debuting so far. A flush of money from foreign funds and mom-and-pop investors putting their money saved during the lockdown to work have driven the surge.
(With Agencies Inputs)
Posted By: Talibuddin Khan