Zomato’s Rs 8,250-cr IPO set to hit D-street; Naukri.com dad or mum to promote Rs 750-cr shares by way of OFS

On-line meals supply platform Zomato is seeking to elevate an enormous Rs 8,250 crore by way of its much-awaited preliminary public providing (IPO).

On-line meals supply platform Zomato is seeking to elevate an enormous Rs 8,250 crore by way of its much-awaited preliminary public providing (IPO). In its DRHP, filed with the capital markets regulator Securities and Trade Board of India (SEBI) immediately, Zomato mentioned its IPO will likely be an amalgamation of contemporary difficulty of fairness shares and an Supply For Sale (OFS) by present shareholder Information Edge Ltd — the dad or mum agency of Naukri.com. With this, Zomato has begun the proceedings of some of the awaited public points on Dalal Road lately. Zomato’s IPO could possibly be the biggest to hit Dalal Road since SBI Playing cards and Fee Providers in March 2020.

Subject particulars

Zomato will elevate Rs 8,250 crore, of which Rs 7,500 crore will likely be a contemporary difficulty, whereas one other Rs 750 crore will likely be an OFS by Information Edge. On Tuesday night, Information Edge, which holds over 18% stake in Zomato knowledgeable the bourses that its Board of Administrators has given approval to take part within the OFS of Zomato. Zomato has additionally mentioned that it would think about a personal placement of Rs 1,500 crore forward of the IPO. Such a transfer is prone to trim the scale of the contemporary difficulty that the corporate has thus far proposed.

Zomato mentioned it would utilise funds raised by way of the difficulty for natural in addition to inorganic development, together with normal company functions. Within the monetary yr ending March 2020, Zomato’s whole revenue stood at Rs 2,742 crore. In the meantime within the pandemic struck 2020, the corporate’s revenue was at Rs 1,367 crore. Zomato continues to stay a loss-making entity as of now.

Valued at $5.4 billion

Zomato, a web based meals supply firm, counts Ant Financials, Information Edge, Sequoia, and Uber as a few of its buyers. The corporate has strengthened its place within the two-player meals supply market with the newest spherical of funding coming in February this yr. Zomato acquired $250 million in its newest funding spherical at a post-money valuation of $5.4 billion, Information Edge had mentioned in an trade submitting. Within the newest rounds of fundraising, Tiger International, Constancy, and Kora Administration have been amongst these writing cheques for the corporate.

“Meals companies is a big market in India with ~$80 Bn (~50% organized). On-line meals supply is predicted to develop strongly to succeed in $22 billion by 2025 rising at 40% CAGR. On-line penetration to extend from 7% immediately to ~10% in 2022 and ~ 20% by 2025,” Bernstein had mentioned in a report final yr. Zomato controls a 50% market share.

In a current report, CLSA mentioned that Swiggy and Zomato are preventing for India’s $11 billion on-line meals supply pie. Profitability is now taking the middle stage within the trade as each Zomato and Swiggy attempt to enhance their unit economics. CLSA believes income will increase as volumes improve.

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