Zomato prepones opening of its Rs 9,375 crore IPO for subscription to 14th July

Zomato, India's largest online food delivery business, has pushed forward the date of its much-anticipated initial public offering (IPO) to next week, from the previous date of July 19th, according to three sources familiar with the situation who requested anonymity.

It now intends to raise Rs 9,375 crore via an initial share offer, which will be open for subscription from July 14th to July 16th.

The entire IPO consists of a new issue of equity shares totalling Rs 9,000 crore and a Rs 375 crore offer-for-sale by Info Edge (India) Ltd. Following considerable interest in its investor roadshows, the company has upped the size of its IPO. The business decision to now raise 9,000 crore through a fresh issuance of shares, up from the previously anticipated amount of 7,500 crore is a resu;t of just that.

Zomato is aiming for ramping up of valuation for its impending IPO from around $8 billion to up to $10 billion, owing to a swift rise in online food-ordering, restaurant bookings, and subscriptions for Zomato Pro businesses, which has resulted in a substantial rise in demand for Zomato's shares from potential investors, as per Mint.

Zomato, which submitted preliminary IPO papers with Sebi back in April, received its observation on July 2nd, according to a Monday update with the regulator.

Zomato's FY20 turnover more than doubled from the previous fiscal to USD 394 million (approximately Rs 2,960 crore), but its earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss was over Rs 2,200 crore.

Info Edge (India) Ltd (18.55 percent), Uber B.V. (9.13 percent), Alipay Singapore Holding Pte. Ltd (8.33 percent), Antfin Singapore Holding Pte. Ltd (8.20 percent), Tiger Global (6 percent), Sequoia Capital (5.98 percent), co-founder Deepinder Goyal (5.51 percent), Temasek Holdings subsidiary (3.65 percent), and a few others are among Zomato's current investors.