Zomato to raise Rs 8.2k cr thro' IPO

Bengaluru: Food delivery aggregator Zomato on Wednesday filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 8,250 crore (around $1.1 billion) through its Initial Public Offering (IPO).

While the IPO offer includes a fresh issue worth Rs 7,500 crore, it also has an offer for sale by its shareholder Info Edge. Info Edge is the parent company of recruitment platform Naukri.com and is the largest investor of Zomato.

The company also mentioned that it will consider a private placement of up to Rs 1,500 crore, prior to filing of the red herring prospectus. In the run up to its IPO, Zomato has already converted itself to a public limited company a couple of weeks ago from a private company. It has so far raised funding of around $900 million from clutch of private equity investors. Sources in the know said the company is likely to be valued at around $7-8 billion in the pre-IPO round.

Zomato is one of the first internet companies which will go public by listing in Indian exchanges.

According to market research firm RedSeer, the total food services market opportunity stands at $65 billion growing at 9 per cent annum and is likely to reach $110 billion in 2025.