Food delivery platform Zomato will go public soon with the release of the company’s Initial Public Offering(IPO) worth Rs 9,375 crore on July 14. The IPO which has been much awaited on Dalal Street will be available at a price band of Rs 72-Rs 76. Zomato’s IPO will be the first among the bunch of Indian tech startups which have emerged over the past few years.
Notably, the company had received the final approval last week from markets regulator SEBI to proceed with the listing. Investors would be required to bid in a price band of Rs 72-Rs 76 and the number of shares purchased has to be in multiples of 195. This means that the minimum amount that needs to be invested comes to Rs 14,040. Shares worth Rs 9,375 crore would be available which includes a fresh issue of shares and an offer for sale(OFS) available from existing investor Info Edge.
Over 75% of the total issue has been reserved for qualified institutional buyers(QIB) while the non-institutional investors (NII) will have 15%. Only 10% would be up for grabs for the retail investors.
From the proceeds of the IPO, about Rs. 6,750 crore will be utilized to fund organic and inorganic growth initiatives while the remaining amount will be used for general purposes, according to the red-herring prospectus filed by Zomato.
Zomato, a loss-making firm, recorded an income of Rs 2,742 crore during FY2020-21. The company raised $250 million in the latest round of funding from new investors like Tiger Global, Kora Management, and Fidelity at a valuation of $5.4 billion. Some other investors in Zomato include Ant Financials, Info Edge, Sequoia, and Uber. The Gurgaon-based company was founded in 2008 by Deepinder Goyal and Pankaj Chaddah.