Zomato filed an IPO application to Rs. 8,250 crores as consumers increasingly turn to online food ordering during the COVID-19 pandemic.
Launched in 2008, Somato is one of the most famous startups in India. It is present in 24 countries and employs more than 5,000 people, according to its website.
In February, the company valued $ 250 million (approximately Rs. 1,860) from five investors, including the hedge fund Tiger Global Management, for a valuation of $ 5.4 billion (approximately Rs. 40,190).
According to draft documents submitted to the market regulator in India on Wednesday, Zomato’s offer will include a new issue of shares worth up to Rs 7,500. The company said it intends to use the proceeds to fund growth initiatives and overall corporate goals.
Top shareholder Info Edge will sell shares worth Rs. 750 crores in the IPO.
The company, along with local rival Suigi, backed by Accel, dominates the Indian food supply market, which according to research firm RedSeer is worth $ 4.2 billion (approximately 31,250 kroner).
India is one of the hottest markets for initial public offering so far in 2021, aided by the flow of foreign money and high interest from mom and dad investors.
However, since the end of March, a second wave of coronavirus infections has been stifling investor enthusiasm for equities and IPOs.
Well-known local brands and names such as Barbeque-Nation Hospitality and Macrotech Developers saw a muted response to their stock listings.
Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Securities India, BofA Securities India and Citigroup Global Markets India are the leading IPO managers of Zomato.
© Thomson Reuters 2021