Zomato IPO: SEBI Approves Rs. 8,250 Crore Worth Share Sales 

Food delivery giant, Zomato is all set to issue fresh equity shares worth Rs.7,500 crores and alongside the company’s early backer Info Edge India Ltd selling its stake worth Rs. 750 crores in the upcoming IPO. The company has received approval from SEBI for the shares sale. It is expected that Zomato will launch the IPO soon, it could be this month. 

In April, there were reports that Zomato had filed the draft red herring prospectus (DRHP) with The Securities and Exchange Board of India, proposing an IPO of Rs. 8,250 crore. However, there was no official confirmation on the same. The company plans to use Rs. 5,625 crore of the net proceeds (including pre-IPO funding) towards funding organic and inorganic growth initiatives.

In September last year, Zomato state that the food delivery industry has recovered the losses triggered by the pandemic Coronavirus lockdowns. The company also stated that the profits have also crossed the pre-COVID records. Zomato reported its revenue of Rs 2,486 crore for FY20, while it reported the losses increasing to Rs 2,451 crore during the lockdowns.

For more such updates, stay hooked on to The Live Mirror.

Also Read:  Zomato IPO: Food Delivery Giant Draft Papers With SEBI?