Ant Group-backed food ordering platform Zomato on Thursday said it plans to raise Rs 9,375 crore through its initial share sale that will open for subscription from July 14 to 16. The price band for the issue has been fixed at Rs 72 to 76 per share.
The total IPO size is Rs 9,375 crore, comprising a fresh issue of equity shares worth Rs 9,000 crore and an offer-for-sale to the tune of Rs 375 crore by Info Edge (India) Ltd, Zomato said. Asked about the valuation of the company post IPO, Zomato CFO Akshant Goyal told PTI that based on a fully-diluted basis, it will be Rs 64,365 crore.
Earlier this week, Zomato had received markets regulator Sebi's go-ahead for the initial public offer (IPO). 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 FY20 revenue had jumped over two-fold to USD 394 million (around Rs 2,960 crore) from the previous fiscal, while its earnings before interest, taxes, depreciation and amortisation (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 (around Rs 40,000 crore). 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 of the company will be listed on BSE and NSE.