New Delhi: India’s most valuable food delivery company Zomato gets the much-needed approval from the Securities and Exchange Board of India (SEBI) for its initial public offering. The proposed Zomato IPO size is Rs 8,250 crore, as per report.
It is expected to launch its share sale later this month to become the first of India’s top unicorns to go public.
Here are some key points:
Zomato IPO comprises fresh issue of equity shares worth Rs 7,500 crore, the PTI reported quoting details from the draft red herring prospectus.
Meanwhile, Info Edge, a key investor in Zomato has decided to lower the size of its offer for sale (OFS) in the IPO of the food delivery platform, as per IANS report.
In a regulatory filing on Sunday, Info Edge (India) said that the Committee of Executive Directors has approved the reduction in the size of the offer for sale by the company, IANS reported.
The Board of Directors of Info Edge had in April approved for its participation in the offer for sale of up to such number of equity shares of Zomato, as would aggregate up to Rs 750 crore, according to IANS.
Zomato had filed preliminary IPO papers with Sebi in April. Sebi”s observation is very necessary for any company to launch public issues like IPO, follow on public offer (FPO) and rights issue, PTI reported.
According to draft red herring prospectus., proceeds from the fresh issue would be used towards funding organic and inorganic growth initiatives; and general corporate purposes, the PTI report says.