Zomato raises 4,196 crore yen from flagship investors ahead of IPO
The company has decided to allocate 5,52,173,505 shares to principal investors at 76 each.
Food delivery platform Zomato said on Tuesday it had raised just over 4,196 crore yen from key investors ahead of its initial share sale, which opens for public subscription on Wednesday.
The company has decided to allocate 5,52,173,505 shares to core investors at 76 each, aggregating the deal size at 4,196.51 crore, according to a circular posted on the ESB website.
BlackRock, Tiger Global Investments Fund, Fidelity, New World Fund Inc, JP Morgan, Morgan Stanley Asia (Singapore) Pte-ODI, Goldman Sachs (Singapore) Pte -ODI, T Rowe, Canada Pension Plan Investment Board, Government of Singapore, L The Singapore Authority and the Abu Dhabi Investment Authority are among the key investors.
Domestic investors who participated in the Anchor Bidding include Kotak Mutual Fund (MF), Aditya Birla Sun Life MF, Axis MF, SBI MF, UTI MF, HDFC MF, ICICI Prudential MF, IDFC MF, Sundaram MF, Edelweiss MF, ICICI Prudential Life Insurance Company and HDFC Life Insurance Company.
The initial public offering (IPO) of 9,375 crore comprises a new issue of shares valued at 9,000 crore and a sale offer for the amount of 375 crore by Info Edge (India) Limited.
The issue, with a price range of 72 to 76 yen per share, will be open for public subscription from July 14 to 16.
Nikhil Kamath, co-founder and CIO, True Beacon and Zerodha, said the Zomato IPO would pave the way for other Indian startups to make initial sales of shares in the Indian market.
“I think the markets are always ready to accept and welcome good business, it all depends on how the business maintains its growth and profits in the future. The current second wave after COVID-19 seems ripe for IPOs, ”Kamath added.
Proceeds from the new issue would be used to fund organic and inorganic growth initiatives and general corporate objectives.
The online food delivery segment has seen significant growth in recent years, with Zomato and Swiggy competing for market share.
Zomato’s revenue for fiscal year 20 had doubled to $ 394 million (about 2,960 crore yen) from the prior year, while its loss of earnings before interest, taxes, depreciation and amortization (EBITDA) was approximately 2,200 yen crore.
In February, Zomato had raised $ 250 million (over 1,800 crore yen) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at 5.4 billion yen. .
Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited and Credit Suisse Securities (India) Private Limited are the global coordinator and lead manager of the issue.
BofA Securities India Limited and Citigroup Global Markets India Private Limited have been appointed investment bankers for the public offering. The share capital of the company will be listed on the BSE and the NSE.