Info Edge, one of Zomato’s earliest and largest shareholders, will sell shares worth ₹750 crores in the upcoming initial public offering (IPO), regulatory filings revealed.
The food delivery company’s public offering is one of the most keenly anticipated IPOs and the company is expected to have a valuation of $6-$8 billion. The company filed a Draft Red Herring Prospectus (DRHP) today.
“The Board of Directors of the Company today considered and have given their approval to the Company to participate in the said Offer for Sale of up to such number of shares of Zomato Limited as would aggregate upto ₹ 7,500 million, the terms and conditions of which will be specified in the Draft Red Herring Prospectus, the Red Herring Prospectus and the Prospectus, and in certain other offer documents and agreements” – Info Edge
Info Edge became the first institutional investor in Zomato when it invested ₹4.7 crores in the company in August 2010. Info Edge’s investment is now worth ₹7,270 crores, The Economic Times reported.
In February, the company raised $250 million from five different investors as part of a primary round led by Kora Management. This gave the company a post-money valuation of $5.4 billion. Info Edge’s stake stood at 18.4% following this fundraising.
Last September, Zomato CEO Deepinder Goyal announced the intention to take the company public in 2021. The company is working with Kotak Mahindra Bank as its lead merchant banker and has appointed Cyril Amarchand Mangaldas and Indus Law as legal advisors, LiveMint reported. Last week, Zomato converted from a private company to a public limited company, taking it one step closer to an IPO.
Meanwhile, Zomato’s biggest rival, Swiggy, raised $800 million this month, valuing the company at around $5 billion.
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