Zomato's Rs 9,375 Cr IPO To Open On July 14, Firm Valued At Over Rs 60,000 Cr

Initially, the company was planning to raise Rs 7,500 crore but increased the offer size by 25% due to strong investor demand.

(Representative Image/Getty)

New Delhi: Food delivery giant Zomato's initial public offer (IPO) of Rs 9375 crore will open on Wednesday, July 14, coinciding with Zomato's 13th birthday week starting July 10.

Initially, the company was planning to raise Rs 7,500 crore but increased the offer size by 25% due to strong investor demand, said banking sources. 

The offer comprising a fresh issue of Rs 9000 crore will close on Friday, July 16, and will list on July 27, according to the offer document reviewed by ABP News.

It is learned that Info Edge, Zomato's early investor, has reduced the size of its secondary share sale in the IPO to Rs375 crore from Rs750 crore previously.

The IPO price band could be in the range of Rs 70 to Rs 72 per share. According to bankers, the company is aiming for a post-diluted valuation of over Rs 60,000 crore. 

The IPO will have 10% of the offer reserved for retail quota, and the Zomato shares are changing hands in the range of Rs 85 to Rs 90 in the run-up to its IPO in the grey market. 

In terms of new funds raised, Zomato's IPO will be India's third-largest offering.

In their initial public offerings (IPOs) in 2008 and 2007, Reliance Power and DLF raised Rs 10,123 crore and Rs 9,188 crore, respectively.

Kotak Mahindra Capital, Morgan Stanley, Credit Suisse, Bofa Securities, Citigroup, and Link Intime lead managers. 

Zomato's early investors include Info Edge (India) Ltd. (18.55%), Uber B.V. (9.13%), Alipay Singapore Holding Pte. Ltd. (8.33%), Antfin Singapore Holding Pte. Ltd. (8.20%), Tiger Global (6%), Sequoia Capital (5.98%), co-founder Deepinder Goyal (5.51%), Temasek Holdings subsidiary (3.65%). 

Zomato's revenue for the first three-quarters of FY2021 was Rs.1,367 crore. The food-tech company's expenses were approximate Rs.1,724 crore, resulting in a loss of Rs.684 crore.

Zomato's revenue increased by 96% in the fiscal year 2020, from Rs. 1,398 crore in FY2019 to Rs. 2,743 crore in FY2020. Zomato received at least 403 million online orders with a gross order value of Rs. 11,221 crore during the fiscal year 2020. Last year, Zomato provided delivery services in approximately 500 cities across India, with over 2 lakh delivery partners.