DECLINE! Info Edge shares tumble 5% intraday ahead of Zomato IPO launch from July 14-16

A day before Zomato's IPO to kick-start, the early investor of the food delivery aggregator — Info Edge - shares decline by around 5 per cent to Rs 5138.15 per share on the BSE intraday trade today.

Zomato is all set to begin its listing journey on exchanges with an initial public offer (IPO) launch from July 14, 2021, which will be open for the next three days till July 16, 2021. The Rs 9375 crore IPO has a price range of Rs 72-76 per share.

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Info Edge is one of the early investors of the food delivery company and has an effective stake in Zomato at 18.4 percent. Earlier, it had launched an offer for sale of Rs 750 crore, however, cut it 50 per cent to Rs 375 crore.

At around 12:30 pm, the scrip was trading 4.5 per cent lower to Rs 5157.05 per share on the BSE, as compared to a 0.63 per cent rise in the S&P BSE Sensex. The stock has opened a quarter per cent higher today in the early trade, however, declined below Rs 5200 per share levels so far on the BSE.

In the last months, the stock has surged nearly 16 per cent from 4682 per share on the BSE and has traded above Rs 5400 per share levels in the last five sessions.

The food delivery giant had raised $250 million in its pre-IPO primary fundraise a couple of months ago at a valuation of $5.4 billion from investors such as Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave.

The company proposes to utilise the net proceeds from fresh issue for funding organic and inorganic growth initiatives; and general corporate purposes. It is being considered as the second-biggest IPO since SBI Cards and Payment Services’ Rs 10,341-crore issue in March 2020.