Zomato IPO: The issue of online food delivery platform Zomato can come on July 19 this month. The company’s IPO was approved by SEBI only last week. According to the Economic Times, the issue of the company may open on July 19 and close on July 22. Actually the market is closed on 21st July due to Bakrid. So the issue of Zomato will close on July 22.
People with knowledge of this matter said that the price band of the company’s issue could be Rs 70-72.
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According to this price band, the company can raise Rs 9375 crore. It will become the second largest IPO company in the last 4 years. Earlier, SBI Cards and Payment Services had raised Rs 10,335 crore. Earlier in October 2017, such a huge amount was raised through issue. Then General Insurance Corporation raised Rs 11,176 crore from IPO.
The price band for the issue of Zomato is expected to be Rs 70-72. According to this, the valuation of the company will be $ 7.6 billion i.e. Rs 56,240 crore.
According to the draft red herring prospects (DRHP) issued by Zomato, the company will issue an issue to raise Rs 7875 crore. Out of this, Rs 7500 crore will be fresh issue. The remaining Rs 375 crore will be sold by existing investor Infoage.
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The biggest stakeholder of the company is Info Edge. It holds 18.5 per cent stake. The company had taken this stake at Rs 1.16 per share.
Other Zomato stakeholders include Uber (9.13%), Alipay Singapore (8.33%), Antfin Singapore (8.2%), Internet Fund (6%), SCI Growth Investments (6%) and cofounder Deepinder Goyal holding 5.51 per cent.
According to a report by ET, Zomato shares are trading at Rs 78-80 per share in the gray market. This is at a 12 per cent premium over the estimated price band of 70-72. In the last fund raised by Zomato, it raised Rs 40,000 crore by selling stake at Rs 55-60 per share.
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