Zomato IPO Date: Zomato IPO is set to open today and close on July 16, 2021. Zomato is looking to raise around Rs 9,375 crore through its initial public offering with a fixed price band of Rs 72-76 per share.
The Zomato IPO will comprise a fresh issue of shares worth Rs 9000 crore and Rs 375 crore offer for sale by its current shareholder Info Edge India Ltd. A total of 65 lakh shares have been reserved for Zomato employees.
Zomato IPO Date: July 14-July 16
Zomato IPO Date, Price: Key Highlights
• Zomato IPO, which aims to raise Rs 9,375 crore, comprises:
–Fresh issuance of equity shares worth Rs 9,000 crore
–Offer for sale (OFS) of Rs 375 crore by its largest shareholder Info Edge India Limited
• Zomato has reserved around 65 lakh equity shares for employees of the food delivery company.
• The Zomato IPO price band has been fixed at Rs 72-76 per equity after consultation with merchant bankers.
• The face value is Rs 1.00 per equity share. Zomato had filed its draft red herring prospectus (DRHP) with SEBI in April 2021.
• The investors can subscribe to a minimum of 195 equity shares and in multiples thereafter.
• The Zomato IPO sale is being managed by banks including Kotak Mahindra Capital, Credit Suisse Securities, Morgan Stanley India,BofA Securities and Citigroup Global.
How will Zomato use funds raised from IPO?
Zomato plans to utilise the funds raised from the IPO to fund organic and inorganic growth initiatives and other general corporate purposes.
Zomato IPO Significance
Zomato IPO is one of the most anticipated Initial Public Offering (IPO) of the calendar year and the largest in over a year.
What is Initial Public Offering (IPO)?
An initial public offering (IPO) is a process of offering shares of a private corporation to the public in new stock issuance. This allows the company to raise funds from public investors.
Why does a company offer IPO?
The initial public offering (IPO) provides companies with the opportunity to get capital by offering shares through the primary market.
There has been a huge demand for Zomato shares from domestic as well as foreign investors. The Zomato IPO may pave way for few foreign institutional investors (FIIs) to enter the Indian market for the first time.
Info Edge with 18.55 percent shares is one of Zomato’s leading investors, followed by Uber BV with 9.13 percent shares, Alipay Singapore Holding Pte Ltd that has 8.33 percent shares, Tiger Global with 6 percent shares. Besides this, Sequoia Capital holds 5.98 percent shares and co-founder Deepinder Goyal holds 5.51 percent shares and Temasek Holdings subsidiary holds 3.65 percent shares.
Info Edge had said on July 5 that it would sell only 50 percent of its shares or Rs 375 crore, of the initial offer as offer-for-sale (OFS) in the IPO.
Zomato was initially supposed to launch its initial public offering on July 19th but it pre-poned by a week. Zomato is India’s largest online food delivery startup, which is facing fierce competition from another food delivery startup Swiggy.
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