Zomato IPO gets SEBI’s nod, issue listing likely in mid-July

Zomato IPO has been given approval by market regulator Securities and Exchange Board of India (SEBI). The Online Food aggregator Zomato plans to raise Rs 8,250 crore from this IPO.

 Zomato had earlier in April moved Draft Red Herring Prospectus (DRHP) for its proposed initial public offering.  As per Zee Business sources, Zomato IPO has got SEBI’s nod and it is expected that the company can be listed anytime around mid-July. Zomato IPO is said to be the biggest IPO in the last one year and it is also the first IPO to be listed of a big startup. Only recent, the food aggregator converted itself from a private company to a public limited company by amending its Memorandum of Association and renaming itself Zomato Limited.    

 As per Zomato’s DRHP, the company plans to raise Rs 8,250 crore, of which Rs 7,500 crore will be of fresh issue and Rs 750 will go for ‘Offer for Sale’. Face value of each share is Rs 1. 

Zomato IPO lead book-running managers are Kotak Mahindra Capital, Credit Suisse Securities, BofA Securities India, Citigroup Global Markets India and Link Intime India. 

Earlier, Zomato had raised $250 million a couple of months ago at a valuation of $5.4 Billion from Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave.   

Zomato reported a revenue of Rs 2,486 crore in FY20, despite its losses widened to Rs 2,451 crore during this period, as the order volumes shrunk due to pandemic.  

The food delivery platform and restaurant aggregator platform was founded by Deepinder Goyal and Pankaj Chaddah as Foodiebay in 2008 and was renamed Zomato on 18th January 2010.   S-ZEE News

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