Zomato– India’s largest online food delivery startup, has advanced its plans to launch its much awaited initial public offering to next week, against its earlier plan of launching the offer on 19 July, said three people aware of the development, speaking on the condition of anonymity.
The ₹9,375 crore IPO is now likely to be launched in the middle of next week, most likely on 14 July, the people cited above said.
“The red herring prospectus was filed earlier this week and only the registrar of companies (RoC) approval is awaited. Given the strong investor demand, the company and bankers have decided to advance the launch timeline,” said the first person cited above.
“The deal is seeing great demand from both foreign and domestic investors. We are likely to see some new FIIs come to the Indian markets because of this deal,” he added.
The Bulls Wire reported on Tuesday that Zomato is eyeing an increase in valuation for its upcoming IPO from around $8 billion to up to $10 billion in the backdrop of a rapid increase in online food-ordering, restaurant-bookings and subscriptions for Zomato Pro businesses, which in turn has caused a significant increase in demand from potential investors for Zomato’s shares.
Zomato has also increased the size of its IPO, after it received strong interest in its investor roadshows. The company will now raise Rs9,000 crore through a fresh issue of shares as against the earlier planned fresh issue size of Rs7,500 crore. Sebi norms allow companies to increase the size of a fresh issue by up to 20% between the DRHP and RHP, without having to file a fresh DRHP again. On the other hand ZOmato’s early investor Info Edge has reduced the size of its secondary share sale in the IPO to Rs375 crore from Rs750 crore earlier.
Zomato’s existing investors include Info Edge (India) Ltd. (18.55%), Uber B.V. (9.13%), Alipay Singapore Holding Pte. Ltd. (8.33%), Antfin Singapore Holding Pte. Ltd. (8.20%), Tiger Global (6%), Sequoia Capital (5.98%), co-founder Deepinder Goyal (5.51%), Temasek Holdings subsidiary (3.65%) and a few others.