Zomato IPO: Price band, opening date and other details

Zomato has advanced the launch its much-awaited initial public offering to next week, against its earlier plan of launching the IPO on July 19. Zomato, India’s largest online food delivery startup, is engaged in a fierce competition with Swiggy.

Zomato Ltd, the Indian food delivery startup backed by Jack Ma's Ant Group, plans to raise $1.3 billion in an initial public offering (IPO), boosting its target by about 14% as demand in its home market rises.

The announcement about the IPO was made by Zomato founder and CEO Deepinder Goyal last year.

The IPO comprises fresh issue of equity shares worth $75 billion and an offer-for-sale to the tune of $7.5 billion by Info Edge (India) Ltd.

Zomato, which filed preliminary IPO papers with Sebi in April, obtained its go-ahead on July 2. Sebi's nod is necessary for any company to launch IPOs, follow on public offer (FPO) and rights issue.

Here are the things to know about the Zomato IPO:

• The IPO opens on July 14 and will close by July 16.
• The bulk of this will be new shares priced at ₹72 to ₹76 each.
• Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Securities, BofA Securities and Citigroup Global are managing the sale.
• The IPO will be a boon for Ant Group, which is benefiting from its early investments in companies like Zomato and digital payments startup Paytm, set to list later this year.
• The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head-on to grab market share.
• Zomato's 2019-20 revenue had jumped over two-fold to $394 million from the previous fiscal year, while its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss was around $22 billion.
• In February, Zomato had raised $250 million in funding from Tiger Global, Kora and others, valuing the online food ordering platform at $5.4 billion.
• The announcement about the IPO was made by Zomato founder and CEO Deepinder Goyal last year.
• As many as 10 companies are expected to file IPO papers this month. These include Glenmark Lifesciences, Windlas Biotech, Medi Assist TPA, Tatva Chintan Pharma, Paras Defence and Seven Island Shipping.
• Star Health & Allied Insurance, Sapphire Foods, Northern Arc, Fino Payments Bank, Paytm, Ixigo, VLCC, Sahajanand Medical Technologies, Lava International, and Veeda Clinical Research are also expected to come out with their IPOs this year.