zomato IPO: Zomato IPO likely to hit market on July 19

Mumbai: The much-awaited initial public offer (IPO) of online food delivery and restaurant discovery platform Zomato is expected to open for subscription on July 19 at a price band of Rs 70-72 per share, said people with direct knowledge of the development. The offer size will likely be as much as Rs 9,375 crore at this price, making it the secondbiggest IPO in the last four years after the Rs 10,355 crore offer from SBI Cards and Payment Services. In October 2017, General Insurance Corporation of India raised Rs 11,176 crore through an IPO.

At the upper end of the price band, the company will be valued at $7.6 billion (Rs 56,240 crore), more than Amazon backed British food delivery firm Deliveroo or Nasdaq-listed Grubhub. The latter two currently trade at a market capitalisation of $7.4 billion and $5.5 billion, respectively. “The Zomato issue is planned for July19 to 22 as the market is closed on July 21 for Bakrid,” said one of the persons. The offer will comprise fresh equity of Rs 9,000 crore and shares worth Rs 375 crore from

, one of the company’s largest shareholders. Zomato didn’t respond to queries.

Info Edge told stock exchanges on Sunday it would reduce the offer for sale in the Zomato IPO from Rs 750 crore targeted earlier by about half.

Info Edge Owns 18.5% in Co
Info Edge currently owns around 18.5% of the company, which was acquired at an average cost of Rs 1.16 per share, according to the draft red herring prospectus (DRHP).

Its chief rival Swiggy is planning a $450 million fundraise from SoftBank Vision Fund, valuing the company at $5 billion, ET reported on April 15. Both have seen orders surge during the pandemic.

Zomato, which had filed its DRHP at the end of April, received approval for its IPO from Sebi last week.

Other shareholders of Zomato include Uber (9.13%), Alipay Singapore (8.33%), Antfin Singapore (8.2%), Internet Fund (6%), SCI Growth Investments (6%) and cofounder Deepinder Goyal (5.51%).

In the unofficial market for unlisted shares, the stock is trading at ?78-80 apiece, around 12% above the projected IPO price of Rs 70-72. In the latest round of funding, Zomato sold shares at ?55-60, for a valuation of ?40,000 crore.

The company plans to use ?5,625 crore of the proceeds toward funding organic and inorganic growth initiatives.

Zomato reported a 463% jump in total revenue from Rs 487 crore in FY18 to Rs 2,743 crore in FY20. Total revenue, in the nine months ended December 31, 2020, stood at Rs 1,368 crore. The company said it has incurred losses of Rs 106.9 crore,Rs 1,010 crore, Rs 2,385.6 crore and Rs 682 crore in FY18, FY19, FY20 and the nine months ended December 31, 2020, respectively.