According to insiders, the Zomato IPO, which gained Sebi permission last week, is scheduled to open for subscription in less than two weeks.
The offer puts Zomato’s worth at $7.6 billion (about Rs 56,240 crore), which is more than Amazon-backed Deliveroo or Nasdaq-listed Grubhub.
The offer will be a mix of Info EdgeEarlier’s fresh issue (of Rs 9,000 crore) and an Offer For Sale(OFS) worth Rs 375 crore.
Info Edge had earlier planned to sell Rs.750 crores worth of shares through the OFS.
New Delhi, India: According to the Economic Times, the IPO of online food delivery and restaurant discovery platform Zomato, which received regulatory approval last week, is expected to open for subscription on July 19 and run for three days until July 22 ( July 21 being a holiday).
According to persons with firsthand knowledge of the matter, the offer could be priced in the range of Rs 70-72 per share.
The IPO size could be as high as Rs 9,375 crore at this price band. This would make it the third-largest IPO in the last four years after SBI Cards and Payment Services’ Rs 10,355 crore offer.
An initial public offering (IPO) by General Insurance Corporation of India raised Rs 11,176 crore in October 2017.
Zomato will be valued at $7.6 billion (almost Rs 56,240 crore) at the top end of the pricing range. This gives it a valuation greater than Amazon-backed British food delivery business Deliveroo or Nasdaq-listed Grubhub.
The magazine quoted one of the sources as saying, “The Zomato issue is planned for July 19 to 22 because the market is closed on July 21 for Bakrid.” The offer will be a mix of a fresh issue (valued at Rs 9,000 crore) and an offer for sale (valued at Rs 375 crore) from Info Edge, the company’s largest stakeholder.
Info Edge had earlier planned to sell shares worth Rs 750 crore through the OFS. But the company announced on Sunday that it would cut the offer for sale in the IPO in half, to Rs 375 crore.
According to the draft red herring prospectus, Info Edge is the company’s largest
stakeholder, with about 18.5 percent of the shares purchased at an average cost of Rs 1.16 per share.
Uber (9.13 percent), Alipay Singapore (8.33 percent), Antfin Singapore (8.2 percent), Internet Fund (6 percent), SCI Growth Investments (6 percent), and co-founder Deepinder Goyal are among the other Zomato shareholders (5.51 percent).
According to an ET article, the stock is selling at Rs 78-80 per share on the unofficial market for unlisted shares. This is at a 12% premium to the estimated IPO price of Rs 70-72. Zomato sold shares at Rs 55-60 in its most recent round of funding, valuing the company at Rs 40,000 crore.
The company intends to spend Rs 5,625 crores of the IPOs proceeds to fund organic and inorganic growth efforts.
Zomato reported sales of Rs 2,743 crore in FY20, up 463 percent from Rs 487 crore in FY18. It made Rs 1,368 crore in revenue in the nine months ending December 31, 2020.
In FY18, FY19, FY20, and the nine months ending December 31, 2020, the firm reported losses of Rs 106.9 crore, Rs 1,010 crore, Rs 2,385.6 crore, and Rs 682 crore, respectively.
