Zomato IPO Date in India: Company files for Rs 8250 crore IPO, Info Edge to sell Rs 750 crore shares

Food aggregator and delivery service company Zomato on Wednesday filed for up to Rs 8250 crore (nearly $1.1 bn) Initial Public Offer (IPO) with the Securities and Exchange Board of India (SEBI). 

As per the Draft Red Herring Prospectus (DRHP) filed by Zomato, the company will offer equity shares comprised of fresh issues of up to Rs 7500 crore and an offer for sale by Info Edge of up to Rs 750 crore. The investor on 27 April had said it will sell its Rs 750 crore shares in the upcoming IPO. 

The Lead book-running managers for Zomato IPO consist of Kotak Mahindra Capital, Credit Suisse Securities, BofA Securities India, Citigroup Global Markets India and Link Intime India. 

Zomato’s IPO is one of the most awaited IPOs by the investors. The food aggregator is to launch its IPO by Mid-2021. Recently, the food aggregator converted itself from a private company to a public limited company by amending its Memorandum of Association and renaming itself Zomato Limited.  

The company said it was requisite to become a public limited company to consider filing the DRHP with SEBI and relevant stock exchanges to list its equity shares on multiple bourses. Zomato was originally incorporated as a private limited company on January 19th, 2010. 

According to SEBI guidelines, any company that wants to list itself on exchanges has to file a DRHP, the very first document of the listing process. It is an exhaustive account of the vital details of a company, including the date of incorporation, description of the business model, and risks, among other things. 

Ahead of its IPO filing, Zomato had raised $250 million a couple of months ago at a valuation of $5.4 Billion from investors: Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave.  

The food delivery service company, in FY20, reported a revenue of Rs 2,486 crore, despite its losses, widened to Rs 2,451 crore during this period, as due to the pandemic the order volumes shrunk. 

The food delivery platform and restaurant aggregator platform was founded by Deepinder Goyal and Pankaj Chaddah as Foodiebay in 2008 and was renamed Zomato on 18th January 2010.  

The listing of Zomato has come at a time when India is going through an economic crisis amid the second wave of covid situation. Apart from Zomato, Policybazaar, Nykaa, and Delhivery may also be firming up plans for a public listing this year.