4 Key Figures from Zomato's Rs 8250 crore IPO filing with SEBI

Zomato has taken one more step in its bid to go for an IPO in 2021. The food tech giant has filed a Draft Red Herring Prospectus with SEBI on April 28, 2021. According to the company, it aims to raise over a billion dollars through a combination of fresh equity issue and the sale of existing shares. At Rs 8,250 crore ($1.1 billion), Zomato’s IPO would be India’s biggest this year. It will also surpass the IRFC IPO worth $649 million in January.

The DRHP is publicly available on the SEBI website which outlines all figures of the proposed IPO. The details in the DRHP includes details of its promoters, the reason for IPO, the use of IPO money, etc. Here are 4 key figures to know from the DRHP.

1. Pre-IPO

The company may offer a pre-IPO placement in consultation with the managers. It has also stated that the aggregate Pre IPO amount will not exceed ₹ 1,500 Crores. The company has stated that if the pre-IPO takes place, the company aims to finish it before the Red Herring Prospectus with the RoC. Further, the company has underlined the minimum offer size of the pre-IPO will be less than 10% of the post PUC of the fresh IPO.

2. Size of the IPO

In its filing, Zomato said it intends to raise Rs 8,250 crore through its public listing. Out of this, it intends to raise Rs 7,500 crore through a fresh issue of equity shares. The remaining Rs 750 crore - it will raise through an offer for sale by existing investor Info Edge.

3. InfoEdge will sell its shares

Info Edge, one of Zomato's early investors, will sell its shares worth Rs 750 crore through the IPO. Zomato also stated that it will offer Info Edge to nominate one non-executive nominee director, liable to retire by rotation, on the Board till their respective shareholding is >7.5% of the shares of the company. Info Edge currently owns around 18.5% of the company, a stake worth Rs 7,270 crore.

4. Use of the IPO Money

The company, in the DHRP, said that it would use 75% of the IPO money to fund organic and inorganic growth initiatives for five years. The ₹ 5,625 crore fund use will span out in customer acquisition, delivery and technology infrastructure, potential acquisitions and strategic initiatives.

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