Zomato's IPO to hit market from July 19; 10 things you MUST know about this much waited listing
New Delhi | Jagran Business Desk: Food delivery service Zomato is expected to start the subscription for its initial public offer (IPO) from July 19 at a price band of Rs 70-72 per share. The offer size of Zomato's IPO will likely be as much as Rs 9,375 crore at this price, making it the second-biggest IPO in the past four years. The company would be valued at $7.6 billion which is more than Amazon-backed British food delivery firm Deliveroo or Nasdaq-listed Grubhub. The mega IPO has also received nod from the Securities and Exchange Board of India (SEBI) indicating its launch soon. Here are 10 points you need to know about this much waited listing.
All you need to know about Zomato's IPO
- Amid a surge in online food-ordering, restaurant-bookings and subscriptions for Zomato Pro businesses, the company is seeking an IPO valuation of $10 billion according to Indian financial daily, Mint.
- Zomato's IPO is expected to hit the Indian market from July 19. Its price band is likely to be in between Rs 70-72 per share.
- Zomato's IPO will see a dilution of 10-15 per cent primarily through a fresh issue of shares and an offer for sale (OFS) by its early investor Info Edge (India) Ltd.
- Info Edge (India) Ltd has reduced its OFS in the company to Rs 375 crore from Rs 750 crore as per the plan.
- Zomato wants to use the IPO proceeds for its acquisitions and organic growth plans.
- Investors such as Temasek and several others could be coming as anchor investors in Zomato’s IPO.
- In current investors in Zomato includes Info Edge, Alipay Singapore Holding Pte Ltd, Uber BV, Antfin Singapore Holding Pte Ltd, Sequoia Capital, Tiger Global, Temasek Holdings subsidiary, co-founder Deepinder Goya, and others.
- Zomato made Rs 1,367 crore revenue in the first three quarters of FY21. The expenses were at Rs 1,724 crore which lead to a loss.
- Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd and Credit Suisse Securities (India) Pvt Ltd will globally manage the booking for the company.
- On the other hand, BofA Securities India Ltd and Citigroup Global Markets India Pvt Ltd have been appointed as merchant bankers to the public issue.
Posted By: Sugandha Jha