Zomato receives Approval from SEBI to raise INR 8,250 crore through IPO
Zomato has received approval from the Securities and Exchange Board of India to raise Rs 8,250 crore through an initial public offering (IPO) and offer for sale (OFS).
According to the Draft Red Herring Prospectus (DRHP), the IPO consists of a fresh issue of equity shares worth Rs 7,500 crore and an offer-for-sale by Info Edge (India) Ltd worth around Rs 750 crore.
Zomato received its observation on July 2, according to an update provided by the capital markets regulator on Monday. In April, the food delivery aggregator filed preliminary IPO papers with SEBI.
SEBI's observation is critical for any company planning to launch public offerings such as an initial public offering (IPO), follow-on public offering (FPO), or rights issue.
According to the draught papers, the proceeds from the new issue would be used to fund organic and inorganic growth initiatives, as well as general corporate purposes.
The global coordinators and book running lead managers for the issue are Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd, and Credit Suisse Securities (India) Pvt Ltd.
As merchant bankers for the public offering, BofA Securities India Ltd and Citigroup Global Markets India Pvt Ltd have been appointed. The company's shares will be listed on the BSE and NSE.
Previously, Info Edge India, Zomato's parent company, reduced its offer for sale size to half; the company will now sell only 50%, or Rs 375 crore, of the initial offer as offer-for-sale (OFS) in Zomato's IPO.
Based on strong demand from global tech specialist funds and emerging funds, Zomato is targeting a listing valuation of $8.7 billion. The restaurant aggregator, which is backed by China's Ant Group, has also increased its primary fund raise through the IPO by 20% to $1.2 billion while reducing the secondary portion, or OFS, by 50% to $50 million.
Zomato raised $250 million in pre-IPO primary funding from investors including Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave a few months ago, at a valuation of $5.4 billion.
Apart from Zomato, two other companies, Chemplast Sanmar and Tatva Chintan Pharma Chem, have received SEBI approval to float an IPO. According to the SEBI update, an Observations Letter was issued to both companies on July 2 and June 30, 2021, respectively.
According to the Draft Red Herring Prospectus (DRHP), the IPO consists of a fresh issue of equity shares worth Rs 7,500 crore and an offer-for-sale by Info Edge (India) Ltd worth around Rs 750 crore.
Zomato received its observation on July 2, according to an update provided by the capital markets regulator on Monday. In April, the food delivery aggregator filed preliminary IPO papers with SEBI.
SEBI's observation is critical for any company planning to launch public offerings such as an initial public offering (IPO), follow-on public offering (FPO), or rights issue.
According to the draught papers, the proceeds from the new issue would be used to fund organic and inorganic growth initiatives, as well as general corporate purposes.
The global coordinators and book running lead managers for the issue are Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd, and Credit Suisse Securities (India) Pvt Ltd.
As merchant bankers for the public offering, BofA Securities India Ltd and Citigroup Global Markets India Pvt Ltd have been appointed. The company's shares will be listed on the BSE and NSE.
Previously, Info Edge India, Zomato's parent company, reduced its offer for sale size to half; the company will now sell only 50%, or Rs 375 crore, of the initial offer as offer-for-sale (OFS) in Zomato's IPO.
Based on strong demand from global tech specialist funds and emerging funds, Zomato is targeting a listing valuation of $8.7 billion. The restaurant aggregator, which is backed by China's Ant Group, has also increased its primary fund raise through the IPO by 20% to $1.2 billion while reducing the secondary portion, or OFS, by 50% to $50 million.
Zomato raised $250 million in pre-IPO primary funding from investors including Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave a few months ago, at a valuation of $5.4 billion.
Apart from Zomato, two other companies, Chemplast Sanmar and Tatva Chintan Pharma Chem, have received SEBI approval to float an IPO. According to the SEBI update, an Observations Letter was issued to both companies on July 2 and June 30, 2021, respectively.
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