Zomato IPO: Rs 8250 crore! Top 10 points investors MUST KNOW after SEBI’s go-ahead

As the Securities and Exchanges Board of India (SEBI) has given go-ahead for Zomato IPO, what are the important pointers an investor should know as the first hurdle for the initial public offering has cleared.

First: The company will sell equity shares worth up to Rs 8250 crore (approximately $1.1 billion), of which Rs 7500 crore will be raised through a new issue and Rs 750 crore through offer for sale, by an investor Info Edge, as per DRHP paper.

Second: Zomato’s revenue in FY20 jumped by over two-fold near Rs 2,960 crore as compared to the previous financial year, while its EBITDA declined by Rs 2,200 crore.

Third: The food delivery aggregator has raised nearly $5.4 billion in pre-IPO primary fundraise through Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave among other investors.

Fourth: Info Edge, one of the food delivery platform’s early investors has recently revealed that it has raised the stake in the company to 18.4 per cent.

Fifth: In a recent filing to exchanges, Info Edge has also cut the offer for sale by 50 per cent for Zomato IPO to Rs 375 crore from Rs 750 crore earlier. 

Sixth: The proceeds obtained from the fresh issue by Zomato will be used towards funding organic and inorganic growth initiatives; and general corporate purposes, as per DRHP papers.

Seventh: Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd, and Credit Suisse Securities (India) Pvt Ltd are the global coordinators and book running lead managers.

Eighth: The food delivery platform has also recently confirmed that the addition of five independent directors to its eight-member board of directors, including four women on April 23.

Ninth: Zomato has also renamed itself to Zomato Ltd after amending its memorandum of association earlier this month to become a public limited company, eventually to launch IPO. 

Tenth: Zomato’s IPO would be the largest so far after SBI Cards and Payment Services’ IPO, which was launched last year between March 2-5, 2020, just ahead of lockdown.