Zomato IPO To Open For Subscription On 14 July

Bids can be made for a minimum of 195 equity shares and in the price band of INR 72 to INR 76 per equity share

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Zomato Limited (formerly known as Zomato Private Limited and Zomato Media Private Limited) to open its initial public offering on July 14, 2021.

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The price band of the offer has been fixed at INR 72 to INR 76 per equity share. Bids can be made for a minimum of 195 equity shares and in multiples of 195 equity shares thereafter.

The IPO consists of a fresh issue aggregating up to INR 90,000 million (fresh issue) and an offer for sale by Info Edge (India) Limited (Info Edge or the Selling Shareholder) aggregating up to INR 3,750 million (offer for sale, and together with the Fresh Issue, the Offer).

This offer includes a reservation of up to 6,500,000 equity shares for purchase by eligible employees, on a proportionate basis and such portion not exceeding 5 per cent of the post-offer equity share capital of the company (the ‘employee reservation portion’).

Last week Info Edge, which owns online classified recruiter Naukri.com, intimated exchanges that it had reduced its offer for sale size by half to INR 375 crore in Zomato's initial public offering, INR 750 crore earlier.

Earlier this week, Sebi cleared Zomato's application for fundraising via IPO.

In February, the food delivery giant had raised $250 million in its pre-IPO primary fundraise, at a valuation of $5.4 billion from investors such as Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave.

In April this year, Zomato had filed the draft red herring prospectus (DRHP) with Sebi for its INR 8,250-crore IPO comprising a fresh issue of INR 7,500 crore and an offer for sale of INR 750 crore by its existing investor Info Edge.

In the financial year ended March 31, 2020, the food delivery company reported a consolidated loss of INR 2,385.6 crore against a loss of INR 1,010.2 crore in the previous year, but revenue nearly doubled to INR 2,604.7 crore from INR 1,312.58 crore in the same period.

Consolidate loss for nine months period ended December 31, 2020, stood at INR 682.2 crore on revenue of INR 1,301.35 crore.

All potential Bidders, other than Anchor Investors, are required to mandatorily utilize the Application Supported by Blocked Amount (ASBA) process by providing details of their respective bank account (including UPI ID (defined hereinafter) in case of Retail Individual Bidder(s)) in which the corresponding Bid Amounts will be blocked by the SCSBs, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, and Credit Suisse Securities (India) Private Limited are the global coordinators and the book running lead managers (GCBRLMs) to the issue. BofA Securities India Limited and Citigroup Global Markets India Private Limited are the Book Running Lead Managers (BRLMs) to the Offer.