Ant-Backed Start-up Zomato Files for $1.1 Billion Mumbai IPO
Zomato Ltd., an Indian food delivery start-up backed by Jack Ma’s Ant Group Co., has filed an initial prospectus with Indian market regulator for an initial public offering that may raise the most amount as 82.5 billion rupees ($1.1 billion).
• Ant-backed Indian start-up Zomato has filed for an IPO that would raise the maximum amount as $1.1 billion.
• The food-delivery group's listing can be India's biggest this year amidst a crushing pandemic.
• Zomato plans to issue 90% of recent shares, while its major shareholder will offer the remainder.
The company plans to issue new shares to lift a maximum 75 billion rupees, while its major shareholder Info Edge India Ltd. will offer 7.5 billion rupees worth of shares within the offering, in line with documents filed with the Securities & Exchange Board of India on Wednesday. The filing confirmed a Bloomberg account last month.
Zomato is additionally considering raising the utmost amount as 15 billion rupees before filing the red herring prospectus, which could potentially reduce the amount it plans to spice up through selling new shares within the IPO, the company said.
At $1.1 billion, Zomato’s IPO would be India’s biggest this year, surpassing Indian Railway Finance Corp.’s $649 million offering in January, to keep with data compiled by Bloomberg. The startup’s listing plans come because the pandemic has driven many Indian consumers to shift their spending online, bolstering the fortunes of e-commerce firms. Nykaa E-Retail Pvt, backed by TPG Capital and online insurance aggregator Policy Bazaar are attending to go public within the local market additionally, Bloomberg News has reported.
Zomato plans to use the proceeds to expand its business and for acquisitions. Kotak Investment Banking, Morgan Stanley, Credit Suisse Group AG, BofA Securities and Citigroup Inc. are arranging the IPO Zomato Ltd., an Indian food delivery start-up backed by Jack Ma’s Ant Group Co., has filed an initial prospectus with Indian market regulator for an initial public offering that may raise the most amount as 82.5 billion rupees ($1.1 billion).