Food supply platform Zomato’s Rs 9,375 crore preliminary public providing (IPO) – India’s largest this yr – will open on Wednesday amid buzz of robust response from international institutional buyers. The IPO shall be open for subscription until July 16. At Rs 72-76 per share price band, the corporate goals to boost Rs 9,375 crore by the supply.
The firm backed by Jack Ma’s Ant Group Co shall be among the many first from an extended record of Indian unicorn startups to launch an IPO. It will even be the primary amongst Indian on-line meals aggregators.
The IPO, which is able to give Zomato a valuation of Rs 64,365 crore, is being touted because the second-biggest since SBI Cards and Payment Services’ Rs 10,341 crore subject in March 2020. It will surpass Indian Railway Finance Corp providing in January.
Post IPO, valuation of Zomato shall be more than the mixed market capitalisation of 5 listed quick meals and restaurant corporations.
Jubilant FoodWorks Ltd, which is the grasp franchise for Domino’s Pizza in India, had a market capitalisaiton of Rs 40,770.52 crore on Tuesday, in line with BSE knowledge.
Burger King India Ltd had Rs 6,659.88 crore m-cap, quick meals restaurant holding firm Westlife Development Ltd (Rs 8,380.89 crore), Barbeque-Nation Hospitality (Rs 3,375.48 crore) and Speciality Restaurants had Rs 336.69 crore m-cap.
The Zomato IPO contains a recent subject of fairness shares value Rs 9,000 crore and an offer-for-sale (OFS) value Rs 375 crore by current investor Info Edge (India), which is the father or mother firm of Naukri.com, in line with the data offered within the draft purple herring prospectus.
Sources stated the IPO has obtained a powerful response from international institutional buyers for its anchor ebook.
The Zomato IPO could have 75 per cent reservation for certified institutional patrons (QIBs) and 15 per cent for non-institutional buyers (NIIs). The remaining 10 per cent of the problem shall be accessible for retail buyers.
The restaurant aggregator has stated it should utilise the web proceeds from the recent subject for funding natural and inorganic development initiatives (Rs 6,750 crore) and common company functions.
Zomato’s 2019-20 income had jumped over two-fold to USD 394 million (round Rs 2,960 crore) from the earlier fiscal yr, whereas its earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) loss was round Rs 2,200 crore.
In February, Zomato had raised USD 250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the net meals ordering platform at USD 5.4 billion (round Rs 40,000 crore).