The decks have been cleared for online food ordering and delivery platform Zomato's initial public offering as the market regulator, Securities and Exchange Board of India (SEBI), has given its nod to the draft red herring prospectus (DRHP) of the Gurugram-based company, reports Livemint.
In the DRHP, which Deepinder Goyal led Zomato had filed on 29 April, the company had proposed to launch an IPO of Rs 8,250 crore. This would include issuing fresh equity shares worth Rs 7,500 crore and a Rs 750 crore offer for sale by the company's early and largest backer Info Edge India Limited.
The company may list in the bourses at steep valuations of $8.7 billion, likely by mid-July.
Zomato plans to use Rs 5,625 crore of the net proceeds (including pre-IPO funding) towards funding organic and inorganic growth initiatives from the funds raised.
Other than this, the company is also likely to take a pre-IPO placement to raise an amount not exceeding Rs 1,500 crore. It is presently said to be in consultation with managers for the same.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.