Zomato registers for $1.11 billion IPO as food delivery surges amid pandemic
Zomato along with rival Swiggy which dominates the Indian food delivery business is worth $4.2 billion as per research firm RedSeer. India has been one of the hottest IPO markets in 2021 so far.
India's widespread food delivery app Zomato, backed by China's Ant Group has registered for an initial public offering of up to Rs 8,250 crore i.e. $1.11 billion, as consumers are increasingly turning towards order food online amid the pandemic.
Launched in 2008, Zomato is present in 24 countries and employs more than 5,000 people. In February, the organisation raised $250 million from five investors including Tiger Global Management for a post-money valuation of $5.4 billion. As per the draft papers submitted to India's market regulator, Zomato's contribution will hold a fresh issue of shares worth up to Rs 7,500 crore. The company stated that it intends to use the profits to fund growth initiatives. Uppermost shareholder Info Edge will be selling shares worth Rs 7,500 crore in the IPO.
Zomato along with rival Swiggy which dominates the Indian food delivery business is worth $4.2 billion as per research firm RedSeer. India has been one of the hottest IPO markets in 2021 so far. However, since late March, the second COVID-19 wave has depressed investor's enthusiasm for stocks and IPOs. Well-known domestic brands such as Barbeque-Nation Hospitality Ltd and Macrotech Developers Ltd saw a silenced response to their stock market listings.
Morgan Stanley India, Kotak Mahindra Capital, Credit Suisse Securities India, BofA Securities India and Citigroup Global Markets India are the front book-running managers for Zomato's IPO.