Info Edge share rose over 3% today after board of directors of the firm approved sale of the company's stake worth Rs 750 crore in Zomato during the latter's upcoming initial public offering (IPO).
The parent company will offload the shares via offer for sale.
Info Edge stock has gained 10.19% in the last 9 days. The share opened with a gain of 2.62% at Rs 5,074 today against previous close of Rs 4,944 on BSE.
The large cap stock touched an intraday high of Rs 5,100, rising 3.14% against previous close.
Info Edge share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock rose 110.4% in one year and gained 5.47% since the beginning of this year.
At 12:47 pm, the stock was trading 1.51% higher at Rs 5,019 on BSE.
"Zomato Limited is proposing an IPO of its Equity Shares, comprising a fresh issue of Equity Shares by Zomato Limited and an Offer For Sale by Info Edge (India) Limited," Info Edge said in a regulatory filing on Tuesday.
"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 Limited as would aggregate up to Rs 750 crore, the terms and conditions of which will be specified in the Draft Red Herring Prospectus, the Red Herring Prospectus and the Prospectus, and in certain other offer documents and agreements," it further added.
Meanwhile, Zomato has filed for an initial public offering of up to Rs 8,250 crore ($1.11 billion), draft papers submitted to the market regulator showed on Wednesday.
Zomato plans to launch an IPO in the first half of this year, as per an internal email sent by founder and CEO Deepinder Goyal to the company's employees last year.
The food-tech giant has been on a fundraising spree to fund the fresh issue, raising around $910 million from a bevy of investors throughout 2020 and early 2021. Zomato's valuation presently stands at $5.4 billion.
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