Food delivery company Zomato Limited (formerly known as Zomato Private Limited and Zomato Media Private Limited) will open its Initial Public Offering on July 14, 2021 and close on July 16.
This would be the second-biggest IPO after SBI Cards and Payment Services’ Rs 10,341 crore issue in March 2020.
The announcement about the IPO was made by Zomato founder and CEO Deepinder Goyal last year.
Here are the details of the IPO
Zomato plans to raise Rs 9,375 crore through its initial public offering (IPO) which consists of a fresh issue of Rs 9,000 crore and an offer for sale (OFS) of Rs 375 crore from its shareholder, Info Edge India Ltd.
The price band is set at Rs 72 to Rs 76 per share. The face value is Rs 1.00 per equity share, with a retail portion of 10 percent, as per information on IPOWatch.
The company is allocating 65 lakh equity shares for employees
Investors can bid for a minimum of 195 equity shares and in multiples of 195 equity shares thereafter.
Up to 75 percent of the total offer has been reserved for qualified institutional buyers, up to 10 percent for retail investors, and the rest 15 percent for non-institutional buyers.
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.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Credit Suisse Securities (India) the Global Coordinators and BLRMs. BofA Securities and Citigroup Global Markets India will manage the issue. Link Intime India is the registrar of the issue.
BofA Securities India Limited and Citigroup Global Markets India Private Limited have been appointed as merchant bankers to the public issue.
The equity shares of the company will be listed on BSE and NSE.
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, PTI said.
In February 2021, 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.