Zomato, India’s largest online food delivery startup, has advanced its plans to launch its much-awaited initial public offering (IPO) to next week, against its earlier plan of launching the offer on July 19, said three people aware of the development on the condition of anonymity.
The ₹9,375-crore IPO will open on July 14 and the offer will close on July 16, the people mentioned above said, the people mentioned above said.
“The red herring prospectus (RHP) was filed earlier this week and the registrar of companies (RoC) approval came in last evening. Given the strong investor demand, the company and bankers have decided to advance the launch timeline,” said one of the persons mentioned above. “The deal is seeing great demand from both foreign and domestic investors. We are likely to see some new foreign institutional investors (FIIs) come to the Indian markets because of this deal,” the person added.
Mint reported on Tuesday that Zomato is eyeing an increase in valuation for its upcoming IPO from around $8 billion to up to $10 billion against the backdrop of a rapid increase in online food-ordering, restaurant-bookings, and subscriptions for Zomato Pro businesses, which in turn has caused a significant increase in demand from potential investors for Zomato’s shares.
The startup has also increased the size of its IPO after receiving strong interest in its investor roadshows. The company will now raise ₹9,000 crore through a fresh issue of shares as against the earlier planned fresh issue size of ₹7,500 crore. Securities and Exchange Board of India norms allow companies to increase the size of a fresh issue by up to 20% between the draft red herring prospectus (DRHP) and (RHP), without having to file a fresh DRHP again. On the other hand, Zomato’s early investor Info Edge has reduced the size of its secondary share sale in the IPO to ₹375 crore from ₹750 crore earlier.
{{/usCountry}}The startup has also increased the size of its IPO after receiving strong interest in its investor roadshows. The company will now raise ₹9,000 crore through a fresh issue of shares as against the earlier planned fresh issue size of ₹7,500 crore. Securities and Exchange Board of India norms allow companies to increase the size of a fresh issue by up to 20% between the draft red herring prospectus (DRHP) and (RHP), without having to file a fresh DRHP again. On the other hand, Zomato’s early investor Info Edge has reduced the size of its secondary share sale in the IPO to ₹375 crore from ₹750 crore earlier.
{{/usCountry}}Zomato’s existing investors include Info Edge (India) Ltd (18.55%), Uber B.V. (9.13%), Alipay Singapore Holding Pte. Ltd (8.33%), Antfin Singapore Holding Pte. Ltd (8.20%), Tiger Global (6%), Sequoia Capital (5.98%), co-founder Deepinder Goyal (5.51%), Temasek Holdings subsidiary (3.65%), and a few others.
Zomato has seen a rapid rise in revenue across business verticals over the past few months. It clocked ₹1,367 crore in revenues for the first three quarters of FY2021. The food-tech company’s expenses were about ₹1,724 crore, which resulted in a loss of ₹684 crore.