Zomato raises ₹4,196 crore from anchor investors ahead of IPO

The company has decided to allocate 5,52,173,505 equity shares to anchor investors at ₹76 apiece.

July 14, 2021 11:28 am | Updated 11:35 am IST - New Delhi:

Representational image only.

Representational image only.

Food delivery platform Zomato on Tuesday said it has raised a little over ₹4,196 crore from anchor investors ahead of its initial share sale, which opens for public subscription on Wednesday.

The company has decided to allocate 5,52,173,505 equity shares to anchor investors at ₹76 apiece, aggregating the transaction size to ₹4,196.51 crore, according to a circular uploaded on BSE website.

BlackRock, Tiger Global Investments Fund, Fidelity, New World Fund Inc, JP Morgan, Morgan Stanley Asia (Singapore) Pte-ODI, Goldman Sachs (Singapore) Pte -ODI, T Rowe, Canada Pension Plan Investment Board, Government of Singapore, Monetary Authority of Singapore and Abu Dhabi Investment Authority are among the anchor investors.

The domestic investors who participated in the anchor bidding include Kotak Mutual Fund (MF), Aditya Birla Sun Life MF, Axis MF, SBI MF, UTI MF, HDFC MF, ICICI Prudential MF, IDFC MF, Sundaram MF, Edelweiss MF, ICICI Prudential Life Insurance Company and HDFC Life Insurance Company.

The ₹9,375-crore Initial Public Offer (IPO) comprises a fresh issue of equity shares worth ₹9,000 crore and an offer-for-sale to the tune of ₹375 crore by Info Edge (India) Limited.

The issue, with a price band of ₹72-76 a share, will be open for public subscription from July 14-16.

Nikhil Kamath, Co-founder and CIO, True Beacon and Zerodha, said that Zomato IPO will pave way for other Indian startups to go for initial share sales in the Indian market.

“I feel markets are always ready to accept and accommodate good business, everything depends on how the company sustains its growth and profits going forward. The present time post COVID-19 second wave looks conducive for the IPOs,” Mr. Kamath added.

Proceeds from the fresh issue would be used for funding organic and inorganic growth initiatives, and general corporate purposes.

The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head on to grab market share.

Zomato’s FY20 revenue had jumped over two-fold to $394 million (around ₹2,960 crore) from the previous fiscal while its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss was around ₹2,200 crore.

In February, Zomato had raised $250 million (over ₹1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at ₹5.4 billion.

Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited and Credit Suisse Securities (India) Private Limited are the global coordinator and book running lead manager to the issue.

BofA Securities India Limited and Citigroup Global Markets India Private Limited have been appointed as merchant bankers to the public issue. The equity of the shares the company will be listed on BSE and NSE.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.