New Delhi: Food Delivery Platform zomato Markets regulator SEBI has got approval for raising Rs 8,250 crore through initial share-sale.
According to the draft red herring prospectus, the initial public offering (IPO) includes fresh issue of equity shares worth Rs 7,500 crore and offer for sale by Info Edge (India) Ltd for Rs 750 crore.
Zomato, which had filed preliminary IPO papers with Sebi in April, received its observation on July 2, showed an update with the regulator on Monday.
SEBI’s observation is very important for any company to launch public issues like IPO, Follow on Public Offer (FPO) and Rights issue.
As per the draft papers, the proceeds from the new issue will be used to finance organic and inorganic development initiatives; and general corporate purposes.
The online food delivery segment has witnessed significant growth over the past few years, with Zomato and Swiggy competing head-on for market share.
Zomato’s 2019-20 revenue grew two-fold from the previous fiscal to $394 million (about Rs 2,960 crore), while earnings before interest, tax, depreciation and amortization (EBITDA) stood at around Rs 2,200 crore.
In February, Zomato had raised USD 250 million (over Rs 1,800 crore) from Tiger Global, Quora and others, valuing the online food ordering platform at $5.4 billion.
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 Manager of the issue.
BofA Securities India Limited and Citigroup Global Markets India Private Limited have been appointed as merchant bankers to the public issue. The shares of the company will be listed on BSE and NSE.
Last year, Zomato founder and CEO Deepinder Goyal told employees that the company was planning to go for an IPO in the first half of 2021.
According to the draft red herring prospectus, the initial public offering (IPO) includes fresh issue of equity shares worth Rs 7,500 crore and offer for sale by Info Edge (India) Ltd for Rs 750 crore.
Zomato, which had filed preliminary IPO papers with Sebi in April, received its observation on July 2, showed an update with the regulator on Monday.
SEBI’s observation is very important for any company to launch public issues like IPO, Follow on Public Offer (FPO) and Rights issue.
As per the draft papers, the proceeds from the new issue will be used to finance organic and inorganic development initiatives; and general corporate purposes.
The online food delivery segment has witnessed significant growth over the past few years, with Zomato and Swiggy competing head-on for market share.
Zomato’s 2019-20 revenue grew two-fold from the previous fiscal to $394 million (about Rs 2,960 crore), while earnings before interest, tax, depreciation and amortization (EBITDA) stood at around Rs 2,200 crore.
In February, Zomato had raised USD 250 million (over Rs 1,800 crore) from Tiger Global, Quora and others, valuing the online food ordering platform at $5.4 billion.
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 Manager of the issue.
BofA Securities India Limited and Citigroup Global Markets India Private Limited have been appointed as merchant bankers to the public issue. The shares of the company will be listed on BSE and NSE.
Last year, Zomato founder and CEO Deepinder Goyal told employees that the company was planning to go for an IPO in the first half of 2021.
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