Zomato IPO to hit the markets soon. Know all about it

Leading online food delivery platform Zomato is set to hit the Indian market with its much anticipated initial public offering (IPO). Market regulator SEBI officially gave its go-ahead to the platform to raise funds via the public offering. The company in April had filed its draft red herring prospectus (DRHP) with the market regulator, proposing an IPO of ₹8,250 crore. The company is going to become the first Indian startup to go public.

Zomato is expected to launch its share sale later this month. Incorporated in 2010, its B2C offerings include food delivery and dining-out services where customers can search and discover restaurants, order food delivery, book a table, and make payments for dining out at restaurants. It is an Indian multinational restaurant aggregator and food delivery company founded by Pankaj Chaddah and Deepinder Goyal in 2008.

According to media reports the Zomato IPO is likely to hit markets on July 19. It added that the price band is likely to be in between ₹70-72 per share.

Info Edge, which owns online classified recruiter Naukri.com, has reduced its offer for sale size by half to Rs 375 crore in Zomato’s initial public offering. Earlier offer for sale size was Rs 750 crore.

“The revised offer for sale by the company would comprise of such number of equity shares held by the company in Zomato, as would aggregate upto Rs 375 crore, the terms and conditions of which will be specified in the red herring prospectus and the prospectus filed in relation to the offer, and in other Offer related documents and agreements,” Info Edge said in its BSE filing on July 4.

As of December 31, 2020, Zomato has established a strong footprint across 23 countries with 131,233 active food delivery restaurants, 161,637 active delivery partners, and an average monthly food order of 10.7 million.