Zomato IPO Date: Key Details of Subscription, Initial Public Offering of Over Rs 9,000 Crore
Zomato IPO Date, Price, Details: Zomato IPO will open for subscription on 14th July Membership will close on 16th July.
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Zomato IPO Details
75% stake in Zomato’s mega IPO will be reserved for Qualified Institutional Buyers (QIBs), while 15% will be reserved for Non-Institutional Investors (NIIs). Only 10% of the public issue is open to retail investors for bidding, which is only Rs 937 crore.
Investors can bid for the issue in the price band of Rs 72-76 per equity share of face value of Re 1. Bidding can be made for a minimum of 195 equity shares and in multiples thereafter.
The IPO will also reserve 65 lakh equity shares for the employees of the company. Zomato got SEBI approval last week.
The food delivery platform will get Rs 9,000 crore from the IPO. According to the RHP filed by Zomato, the company will use Rs 6,750 crore for organic and inorganic growth initiatives, while the rest will be used for general corporate purposes.
Zomato’s total income in the financial year ended March 2020 was Rs 2,742 crore. During the pandemic, the company’s income was recorded at Rs 1,367 crore. Zomato continues to remain a loss-making entity.
Zomato IPO Date, Price, Details
- Zomato’s IPO will open for subscription on July 14. According to the Economic Times report, the subscription will stop on July 16.
- According to a report by Moneycontrol, Zomato’s initial public offering will consist of a fresh issue of equity shares worth Rs 9,000 crore.
- There will be an offer for sale of Rs 375 crore from investor and shareholder Info Edge India.
- According to a Moneycontrol report, 65 lakh equity shares will be reserved exclusively for Zomato employees.
- ET reported that the Qualified Institutional Buyers (QIBs) stake will get up to 75 per cent reservation in the net issue and non-institutional investors (NIIs) will get 15 per cent allocation.
- According to an IANS report, ahead of Zomato’s IPO, leading investor Info Edge had decided to reduce the size of its offer for sale (OFS).
- The board of directors of Info Edge had in April approved its participation in the proposal for sale of such equity shares of Zomato for a total amount of Rs 750 crore. Now, the OFS size of Info Edge in the Zomato IPO is Rs 375 crore, said the IANS report.
- “The revised offer for sale by the company shall include the number of equity shares held by the company in Zomato, aggregating to Rs 3,750 million, the terms and conditions of which shall be specified in the relevant red herring prospectus. in the proposal, and other documents and agreements relating to the proposal,” it said, as per the IANS report.
- Earlier in July, Zomato had received market regulator SEBI’s nod for an IPO.
Allotment, refund and listing dates
The company will finalize the IPO share allocation around July 22, and the funds will be refunded or unblocked from the ASBA account around July 23, 2021.
The issued equity shares will be credited to the demat accounts of eligible investors around July 26, and the shares will start on the exchanges on July 27.
Kotak Mahindra Capital Company, Morgan Stanley India Company and Credit Suisse Securities (India) are the Global Coordinators and Book Running Lead Managers of the issue. BofA Securities India and Citigroup Global Markets India are the Book Running Lead Managers of the offer.