Zomato, the online food delivery platform, has filed for an Initial Public Offering of up to Rs 8,250 crore as as consumers increasingly turn to ordering food online during the COVID-19 pandemic. Draft papers submitted to the market regulator showed, Reuters said in a report.
In a regulatory filing, Info Edge said, "The Board of Directors of the Company today considered and have given their approval to the company to participate in the said Offer for Sale of up to such number of shares of Zomato Ltd as would aggregate up to Rs 7,500 million...," it added.
Info Edge said it would sell stake worth Rs 750 crore in the IPO of its investee company Zomato.
The terms and conditions of these will be specified in the Draft Red Herring Prospectus, the Red Herring Prospectus and the Prospectus, and in certain other offer documents and agreements, the filing said.
On April 23, Zomato had announced the appointment of five independent directors on its eight-member board, including four women.
In February, Zomato had raised $250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at $5.4 billion.
On a fully converted and diluted basis, Info Edge's effective stake in Zomato stands at 18.4 percent, Info Edge had said.
Last year, Zomato founder and CEO Deepinder Goyal had told employees that the company plans to go for an IPO in the first half of 2021.
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 $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.
Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Securities India, BofA Securities India and Citigroup Global Markets India are the lead book running managers for Zomato's IPO.
The equity shares of the company will be listed on BSE and NSE.
Launched in 2008, Zomato is one of India's most prominent startups. It is present in 24 countries and employs more than 5,000 people, according to its website.