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Zomato IPO gets SEBI's approval, listing likely in mid-July; check out details

Zomato IPO gets SEBI's approval, listing likely in mid-July; check out details

Said to be the biggest initial public offering in the last one year and also the first IPO of a big startup to be listed, Zomato can be listed around mid-July

Zomato, backed by China's Ant Group, plans to raise Rs 8,250 crore from its initial pubic offering (IPO) Zomato, backed by China's Ant Group, plans to raise Rs 8,250 crore from its initial pubic offering (IPO)

Zomato's IPO has been given approval by the Securities and Exchange Board of India (SEBI), and it is likely that the food delivery platform can be listed anytime around mid-July. 

Zomato, backed by China's Ant Group, plans to raise Rs 8,250 crore from its initial share sales. The company had in April this year moved Draft Red Herring Prospectus (DRHP) for its proposed IPO. 

Said to be the biggest initial public offering in the last one year and also the first IPO of a big startup to be listed, Zomato can be listed around mid-July, Zee Business reported. The food aggregator will issue fresh equity shares worth Rs 7,500 crore along with its early investor Info Edge India Ltd, putting its stake worth Rs 750 crore in Zomato's upcoming IPO.

Also Read: Zomato raises $250 million from 5 different investors

Proceeds from the fresh issue will be used towards funding organic and inorganic growth initiatives, and general corporate purposes.

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.

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.

Also Read: Zomato files for IPO, plans to raise Rs 8,250 crore

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited and Credit Suisse Securities (India) Private Limited are the global coordinator and book running lead manager for 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.

Last year, Zomato founder and CEO Deepinder Goyal told employees that the company plans to go for an IPO in the first half of 2021.
 
 

Published on: Jul 03, 2021, 4:35 PM IST
Posted by: Manali, Jul 03, 2021, 4:27 PM IST