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Food Delivery Platform Zomato’s IPO Offer Price Set At $0.96-1.02

Zomato's Initial Public Offering (IPO) is set to open on July 14.

NEW DELHI — Indian online food delivery platform Zomato said on July 8 that it would price its initial public offering (IPO) in the range of INR 72 to INR 76 ($0.96 – $1.02) per share with the IPO set to open for subscription from July 14 to 16.

The IPO consists of fresh issues aggregating up to INR 9,000 crore ($1.2 billion) and an offer for sale by shareholder Info Edge India Ltd aggregating up to INR 375 crore ($50.1 million).

Zomato had filed for an Initial Public Offering (IPO) in May to raise INR 8,250 crore ($1.1 billion).

The company submitted a prospectus to the Indian markets regulator Securities and Exchange Board of India in April to expand its operations in areas like customer acquisition, technology, and infrastructure.

Bids can be made for a minimum of 195 equity shares, and in multiples of 195 equity shares thereafter, the company said in a statement. The offer includes a reservation of up to 65 lakh equity shares for purchase by eligible employees.

Apart from that, not more than 15 percent of the offer will be available for allocation on a proportionate basis to non-institutional bidders. Not more than 10 percent of the offer will be available for allocation to retail individuals.

“Delighted that Indian start-ups — Delhivery, Nykaa, Paytm, and Zomato will be listing in the Indian stock markets & raising growth capital through IPOs,” Amitabh Kant, Chief Executive Officer of government think-tank NITI Aayog, tweeted.

“This demonstrates the vibrancy & dynamism of our Startup movement & the maturity of our capital markets. Remarkable move.”

However, the company has seen a downfall in its revenue over the past couple of years, with food tech becoming a highly competitive space.

Zomato’s restated loss for the year widened to INR 2,385 crore ($318.8 million) in the fiscal year ended March 31, 2020, from a loss of INR 1,010 crore ($134.9 million) in the fiscal year 2019. It reported a loss of INR 682 crore ($91 million) for the nine months ending Dec. 31, 2020.

Kotak Mahindra Capital, Morgan Stanley India, and Credit Suisse Securities India are the global coordinators and book running lead managers to the issue. BofA Securities India and Citigroup Global Markets India are the lead managers to the offer.

Zomato recently jumped into the e-grocery space with a $100 million investment in online e-grocer Grofers. Separately, IPO-bound Zomato also filed a notification with India’s anti-trust regulator, the Competition Commission of India, to acquire a 9.3 percent stake in Grofers.

(With inputs from ANI)

(Edited by Abinaya Vijayaraghavan and Praveen Pramod Tewari)

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