MONEY

SEBI approves Zomato’s IPO; food delivery aggregator’s share sale likely by mid-July

Zomato’s IPO has been given approval by the Securities and Exchange Board of India (SEBI), and it is likely that the food delivery platform can be listed anytime around mid-July.  

Zomato, backed by China’s Ant Group, plans to raise Rs 8,250 crore from its initial public offer (IPO). The company had in April this year moved the Draft Red Herring Prospectus (DRHP) for its proposed IPO.  


Said to be the biggest IPO in the last one year and also the first IPO of a big startup to be listed, Zomato can be listed around mid-July, according to some media reports. The food aggregator will issue fresh equity shares worth Rs 7,500 crore, along with its early investor, Info Edge India, putting its stake worth Rs 750 crore in Zomato’s upcoming IPO. 


Proceeds from the fresh issue will 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 $394 million (around Rs 2,960 crore) from the previous financial year, while its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) loss was around Rs 2,200 crore. 


In February, Zomato had raised $250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at $5.4 billion. 

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