Food delivery giant Zomato has fixed the price band for its initial public offer (IPO) at Rs 72-76 per share. The much-awaited IPO will open for subscription on July 14 and close on July 16.
The IPO comprises a fresh issue of shares worth Rs 375 crore and an offer for sale of Rs 9,000 crore by its current promoter Info Edge India Ltd. Total 65 lakh shares have been reserved for employees of the company.
Zomato plans to raise 9,375 crore through the share sale.
The face value is Rs 1.00 per equity share. Zomato filed its draft red herring prospectus (DRHP) in April 2021 with SEBI.
The Zomato IPO has been pre-poned from July 19 to July 14
According to media reports, there been great demand for the sahres of Zomato from domestic as well as foreign investors. A few foreign institutional investors (FIIs) may enter the Indian market for the first time due to the IPO.
Info Edge (18.55 per cent) is one of Zomato’s leading investors, along with Uber BV (9.13 per cent), Alipay Singapore Holding Pte Ltd (8.33 per cent), Tiger Global (6 per cent), Sequoia Capital (5.98 per cent), co-founder Deepinder Goyal (5.51 per cent), and Temasek Holdings subsidiary (3.65 per cent).
On July 5, Info Edge said it would sell only 50 per cent, or Rs 375 crore, of the initial offer as offer-for-sale (OFS) in the IPO.
Zomato will use the IPO proceeds for acquisitions and organic growth plans. In fiscal 2020, the company witnessed a gross order value of Rs 11,221 crore. Its premium subscription programme ‘Zomato pro’ recorded 1.4 million members till December 31.