Zomato may launch IPO by June, plan to raise 8250 crore, application in SEBI: Zomato IPO

Zomato IPO: The IPO will include an offer for sale of Rs 750 crore and a fresh issue of Rs 7500 crore from Info Edge.

zomato IPO

The online food delivery app Zomato may launch its much-awaited IPO by June. Zomato plans to raise Rs 8250 crore through an IPO. The Food Delivery app has filed Draft Red Herring Prospectus (DRHP) in the market regulator SEBI for its proposed IPO.

According to DRHP, Zomato’s IPO will include Fresh Equity Shares and Offer for Sale (OFS) of its current shareholder Info Edge Limited. Info Edge Limited is the parent company of Job Portal Naukri.com. It is believed that Zomato’s IPO may be the biggest IPO in the last year in the stock market. Furthermore, this will be the first major startup IPO that will come up for listing.

Zomato says that before the IPO, he is also considering a private placement of Rs 1500 crore. In such a situation, it is possible that the size of the company’s proposed fresh issue may be reduced. DRHP is the first document to be submitted to SEBI for an IPO. In addition, details related to the company are given. The date of formation of the company, details of the business model of the company, and the risk associated with it are detailed.

IPO of how big size

Through the issue, the company will raise up to Rs 8250 crore. There is a plan to raise 7500 crore rupees through fresh issue, while 750 crores will be raised from the offer for sale. In the offer for sale, investors leave by selling their shares. InfoAge has already announced that it will sell its stake of Rs 750 crore in the issue of Zomato. One reason for the large size of the issue is that after listing, the old investors will exit by selling shares at a good price. The face value of every share in the offer has been kept at Rs 1.\

Issue possible by June

Usually 21 working days are fixed by SEBI for approval of the issue. If all goes well and no major bottlenecks arise, the issue may be approved by the end of May. While the issue may come in the market by June if the market conditions are good. For the purpose of raising money, the company has written that the money raised from the issue will be used for organic and organic growth. Organic growth means increasing the existing business to achieve growth.

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