Updated: July 8, 2021 3:05:13 pm
Zomato IPO: The initial public offering (IPO) of online food delivery platform Zomato will open on Wednesday, July 14, 2021, and will be available for subscription till Friday, July 16, 2021. The price band of the IPO has been fixed at Rs 72-76 per share of the face value of Rs 1 each. Earlier this week, the company had received a go-ahead from markets regulator Sebi.
The online food delivery giant aims to raise Rs 9,375 crore through the offer. The Zomato IPO comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer for sale (OFS) worth Rs 375 crore by Info Edge (India), the parent company of Naukri.com, as per the information provided in the red herring prospectus available on the National Stock Exchange (NSE).
Zomato had filed preliminary papers with the market regulator in April this year and received the approval on Monday to float the IPO. Sebi’s observation is very necessary for any company to launch any public issue such as IPO, follow on public offer (FPO) and rights issue.
Investors who wish to subscribe to Zomato’s IPO can bid in the lot of 195 equity shares and multiples thereof, as per its newspaper advertisement to Financial Express. At the upper price band, they will have to shell out Rs 14,820 to get a single lot of Zomato. The shares will be listed on both BSE and NSE.
The Zomato IPO will have 75 per cent reserved for qualified institutional buyers (QIBs) and 15 per cent will be reserved for non-institutional investors (NIIs). The remaining 10 per cent of the issue will be available for retail investors.
The proceeds from the fresh issue will be used towards funding organic and inorganic growth initiatives and for general corporate purposes, according to the information in the red herring prospectus.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Credit Suisse Securities (India) are the global coordinators and book running lead managers, while BofA Securities India and Citigroup Global Markets India are the book running lead managers to the IPO. Link Intime India is the registrar of the issue.
The anchor portion is likely to open on Tuesday, July 13, 2021, one working day prior to the opening date for the public offer, the share allotment is likely to take place on July 22, 2021, and the shares are expected to be listed on July 27, 2021.
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