Zomato is aiming to raise Rs 8,250 crore through its soon-to-be-launched initial public offering (IPO). The Zomato IPO will include both a fresh issue of equity shares and an offer for sale (OFS) by Info Edge Ltd. The shareholder is the parent company of Naukri.com. As reported by the Financial Express , the food delivery company has said that a private placement of Rs 1,500 crore ahead of the IPO might be possible. This might reduce the size of the fresh issue which Zomato has proposed.
As per the publication, Zomato will use the funds collected from the IPO for its organic and inorganic growth. Along with this, the amount will be used for general corporate purposes.
The company raised $250 million from five investors in February for a post-money valuation of $5.4 billion. The investors included hedge fund Tiger Global Management, Fidelity, and Kora Management.
The fresh issue will be worth Rs 7,500 crore while Zomato’s top shareholder Info Edge Ltd will sell shares worth Rs 750 crore.
The income of Zomato in the financial year ending March 2020 was Rs 2,742 crore, reported Financial Express.
Zomato was established in 2008 and currently operates in over 24 countries. The food delivery app has over 5,000 employees. Its main competitor in the Indian market is Swiggy, another Indian food delivery company that was established in 2014.
The Zomato IPO is one of the most awaited public issues. For the Zomato IPO, Citigroup Global Markets, Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India, and Credit Suisse Securities India are the leading book-running managers.
from Firstpost India Latest News https://ift.tt/3gLmKCM
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