Zomato IPO Likely to Hit Market on July 19

The Much-awaited initial public offer (IPO) of online food delivery and restaurant discovery platform Zomato is expected to open for subscription on July 19 at a price band of Rs.70-72 per share, said people with direct knowledge of the development. The offer size will likely be as much as Rs.9, 375 crore at this price, making it the second biggest IPO in the last four years after the Rs.10, 355 crore offer from SBI cards and payment services. In October 2017, General Insurance Corporation of India raised Rs.11, 176 crore through an IPO.

At the upper end of the price band, the company will be valued at Rs.7.6 billion (Rs.6, 240 crore), more than Amazon-backed British food delivery firm Deliveroo or Nasdaq-listed Grubhub. The latter two currently trade at a market capitalization of Rs.7.4 billion and Rs.5.5 billion, respectively. “The Zomato issue is planned for July 19 to 22 as the market is closed on July 21 for Bakrid,” said one of the persons. The offer will comprise fresh equity of Rs.9, 000 crore and shares worth Rs.375 crore from Info Edge, one of the company’s largest shareholders. Zomato didn’t respond to queries.

Info Edge told stock exchange on Sunday it would reduce the offer for sale in the Zomato IPO from Rs.750 crore targeted earlier by about half. S-ET

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