Zomato IPO: Food delivery platform Zomato’s initial public offer (IPO) will open for retail subscription on July 14.
The Zomato IPO market lot size is 195 shares. The company has set the offer price for its IPO at Rs 72-76 per equity share. A retail-individual investor can apply for up to 13 lots (2535 shares or Rs 1,92,660).
The public issue will close on July 16.
Zomato said that the basis of allotment of IPO will be done on July 22 and refunds will be initiated on July 24.
The shares of Zomato will be credited to demant accounts on July 26. The listing of Zomato shares will take place on July 27.
In the grey market, the unlisted shares of Zomato are quoting at a premium of Rs 15-20 apiece.
The company had earlier received markets regulator Sebi’s go-ahead to raise Rs 8,250 crore through an initial share-sale. The IPO comprises fresh issue of equity shares worth Rs 7,500 crore and an offer-for-sale to the tune of Rs 750 crore by Info Edge (India) Ltd.
Zomato had filed preliminary IPO papers with Sebi in April. It obtained its observation on July 2.
Going by the draft papers, proceeds from the fresh issue would be used towards funding organic and inorganic growth initiatives; and general corporate purposes.
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 USD 394 million (around Rs 2,960 crore) from the previous fiscal year, while its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss was around Rs 2,200 crore.
In February, Zomato had raised USD 250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at USD 5.4 billion.
Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd and Credit Suisse Securities (India) Pvt Ltd are the global coordinators and book running lead managers to the issue. BofA Securities India Ltd and Citigroup Global Markets India Pvt Ltd have been appointed as merchant bankers to the public issue. The shares the company will be listed on BSE and NSE.