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Deepinder Goyal's Zomato opens ₹8,500 crore QIP share sale, floor price at ₹265.91 per share
Food delivery giant Zomato has approved a Qualified Institutional Placement (QIP), with a floor price of ₹265.91 per share, according to an exchange filing
Food delivery giant Zomato Ltd has approved a Qualified Institutional Placement (QIP), with a floor price of ₹265.91 per share, according to an exchange filing on Monday, November 26, 2024.
This comes after the company had earlier said it planned to raise ₹8,500 crore from such an offering.
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What is a Qualified Institutional Placement (QIP)?
A Qualified Institutional Placement is a method for a company to raise capital by selling shares or other securities to qualified institutional buyers (QIBs) who are larger investors such as mutual funds, pension funds, and in some cases, even venture capital funds.
What are the details of Zomato's QIP?
The Zomato QIP opened on November 25 itself with the floor price for the issue being ₹ 265.91 per equity share.
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“Pursuant to Regulation 176(1) of a special resolution on November 22, 2024, by way of postal ballot, the company may offer a discount of not more than 5 per cent on the floor price so calculated for the issue,” the filing read.
According to a PTI report, Zomato CEO Deepinder Goyal as saying that the proposed fundraise is meant to strengthen the company's balance sheet.
“The Issue price will be determined by the Company in consultation with the book running lead manager,” the company wrote in its filing.
How did Zomato's shares perform?
Zomato Ltd shares were trading at ₹280.55 on the Bombay Stock Exchange (BSE) at 3:40 pm IST on Tuesday, November 26, 2024. This was a gain of 2.54% or 6.95 points.
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