BackZomato gets Sebi nod for ₹8,250-cr share sale
The company will be issuing fresh equity shares worth ₹7,500 crore, along with the company’s early backer Info Edge India Ltd selling its stake worth ₹750 crore in Zomato's upcoming public offering
PremiumMumbai: The Securities and Exchange Board of India has given its nod for food delivery platform Zomato Ltd to raise funds via an initial public offering (IPO), said a person aware of the development.
“They have received the go-ahead from Sebi. It should be updated on the regulator’s website on Monday. Now that the approval has come, the launch can happen anytime soon, most likely this month," the person said.
A spokesperson for Zomato did not comment.
On 29 April, Zomato filed its draft red herring prospectus (DRHP) with the markets regulator, proposing an IPO of ₹8,250 crore.
The company will issue fresh equity shares worth ₹7,500 crore along with the company’s early backer Info Edge India Ltd selling its stake worth ₹750 crore in Zomato’s upcoming public offering.
The company plans to use ₹5,625 crore of the net proceeds (including pre-IPO funding) towards funding organic and inorganic growth initiatives.
Zomato will also likely take a pre-IPO placement, which may be undertaken in consultation with the managers for an aggregate amount not exceeding ₹1,500 crore at a final price decided by the company.
Earlier, CNBC had reported that Zomato is likely to have increased the offer size to about $1.25 billion with primary fund raise likely to be about 20% higher at $1.2 billion.
Valuation is seen at $8.7 billion for the likely mid-July listing.
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