Zomato IPO: Price band fixed at Rs 72-76 for the Rs 9,375-crore issue

Zomato IPO : a food delivery company, announced at a press conference that the price range for its eagerly awaited public issue was Rs 72-76 per equity shares.

Subscriptions to the Rs 9.375-crore offer are available on July 14. They will close on July 16. The issue’s Anchor Book, if applicable, will be open one day prior to the issue opening.

Zomato IPO is the second largest IPO after SBI Card (Rs 10.355 crore), which was launched in March 2020.

The public offering includes a new issuance of Rs 9.9 billion and an offer to sell Rs 375 million by Info Edge, an existing selling shareholder. For its employees, the public issue will include a reserve of up to 65 million equity shares.

The total offer size at April’s red herring prospectus filing was Rs 8,250 crore.

According to the RHP, the new issue size has increased to Rs 9,500 crore from the previous Rs 7,500 crore.

Investors may apply for at least 195 equity shares, and multiples of that number thereafter.

Zomato has reserved 75 percent of the total offer to qualified institutional buyers. Retail investors can get up to 10%, while non-institutional buyers can get the remaining 15% in Zomato IPO.

In February, the company had already raised $250 million from pre-IPO investors like Tiger Global, Fidelity and Dragoneer, at a value of $5.4 billion.

Food delivery company has recorded a consolidated loss of Rs 2,385.6 crore for the financial year ending March 2020, an increase from Rs 1,010.2 crore. However, revenue almost doubled from Rs 1,312.58 lakh to Rs 2,604.7 million in the same period.