The price band of Zomato IPO is expected to be around Rs 70 to Rs 72 per share, and the food delivery company is expecting to get an IPO valuation of $10 billion
Food delivery company Zomato is expected to launch its share sale in the India market later in July. According to a LiveMint report, Zomato had filed its draft red herring prospectus (DRHP) in April with the market regulator Securities and Exchange Board of India (SEBI).
The food delivery company has proposed an IPO of Rs 8,250 crore. SEBI approved Zomato to raise funds through the public offering.
The company is going to become the first Indian startup to go public. Here are some of the important details of the Zomato IPO which is going to launch this July:
There will be a dilution of about 10 percent to 15 percent via the Zomato IPO. This is going to be through a fresh issue of shares and an offer for sale (OFS) by its early investor Info Edge (India) Ltd.
The funds raised through the Zomato IPO will be used for acquisitions and organic growth plans.
The lead managers and global coordinators to the Zomato IPO are Credit Suisse Securities (India) Pvt Ltd, Morgan Stanley India Company Pvt Ltd and Kotak Mahindra Capital Company.
It is expected that the IPO is going to hit the market on 19 July, as per a report in The Economic Times.
With the surge in online food ordering, Zomato aims to get an IPO valuation of $10 billion.
The price band of Zomato IPO is expected to be around Rs 70 to Rs 72 per share.
The offer for sale (OFS) by the company’s investor Info Edge has been reduced from Rs 750 crore to Rs 375 crore.
The merchant bankers to the Zomato IPO are BofA Securities India Ltd and Citigroup Global Markets India Pvt Ltd.
In the grey market area, the shares were trading stronger. They were trading at Rs 88.5 per piece which has a premium of 23 percent over the tentative IPO price.