Zomato IPO: Rs 8250 crore! Top 10 points investors MUST KNOW after SEBIs 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.
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.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.