New Delhi: Zomato gets the much-needed approval from the Securities and Exchange Board of India (SEBI) for its initial public offering. The proposed Zomato IPO size is Rs 8,250 crore, as per a PTI report.
- Zomato IPO comprises fresh issue of equity shares worth Rs 7,500 crore, the PTI reported quoting details from the draft red herring prospectus.
- Meanwhile, Info Edge, a key investor in Zomato has decided to lower the size of its offer for sale (OFS) in the IPO of the food delivery platform, as per IANS report.
- In a regulatory filing on Sunday, Info Edge (India) said that the Committee of Executive Directors has approved the reduction in the size of the offer for sale by the company, IANS
- The Board of Directors of Info Edge had in April approved for its participation in the offer for sale of up to such number of equity shares of Zomato, as would aggregate up to Rs 750 crore,
according to IANS.
- Zomato had filed preliminary IPO papers with Sebi in April. Sebi”s observation is very necessary for any company to launch public issues like IPO, follow on public offer (FPO) and rights
issue, PTI reported.
- According to draft red herring prospectus., proceeds from the fresh issue would be used towards funding organic and inorganic growth initiatives; and general corporate purposes, the PTI
- Zomato”s 2019-20 revenue had jumped over two-fold to USD 394 million (around Rs 2,960 crore) from the previous fiscal year, while its Earnings Before Interest, Taxes, Depreciation, and
Amortization (EBITDA) loss was around Rs 2,200 crore.
- In February, Zomato had raised USD 250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at USD 5.4 billion.
- Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd and Credit Suisse Securities (India) Pvt Ltd are the global coordinators and book running lead managers to the issue
- Last year, Zomato founder and CEO Deepinder Goyal had told employees that the company was planning to go for an IPO in the first half of 2021, as per the PTI report.
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