Food Delivery giant Zomato denies media reports of filling drafts with SEBI

Zomato has denied media reports that it will be filing a draft, Red Herring Prospectus (DRHP), an important step to go public on Friday. Meanwhile, the founder of Zomato, Deepinder goyal said that the news was “incorrect” through a tweet.

Deepinder Goyal, the founder of Zomato in a tweet said, “Wouldn’t typically comment on speculation but had to stop the barrage of phone calls from the press and friends/family. Back to work (sic).”

According to a report of MoneyControl, Zomato was likely to file draft papers with market regulator SEBI on April 23. The publication further stated that on Thursday, the company’s internal review of the draft and other processes was completed.

In all streets, Zomato’s Initial Public Offering is much anticipated and it will trigger the listing of many startups of India. Zomato had converted itself from a private company to a public one by amending its Memorandum of Association and renaming itself Zomato Limited. It said that the move to convert itself into a public limited company was necessary to file IPO papers with SEBI.

According to a report published in The Hindu, SEBI has tightened rules for provisional debt rating. Credit Rating Agency (CRA) is going to check the pendency of compliance. Market regulator SEBI has come out with all new framework to strengthen policies on Provisional Rating Agency. Compliance cost refers to all the regulations that the industry pays to adhere to industry regulations. SEBI has stated that under the new framework, all provisional ratings, long term or short term, for debt instruments, need to be prefixed as ‘Provsional’, before rating symbol in all its communications. These communications include letters, press release and rating rationale.

“In no case shall a rating, including provisional rating, be assigned by a credit rating agency for an issuer or client evaluating strategic decisions such as funding mix for a project, acquisition, debt restructuring, scenario-analysis in loan refinancing,” SEBI said.

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