Info Edge has decreased the size of its give for sale (OFS) in the upcoming initial public supplying (IPO) of Zomato to Rs 375 crore from Rs 750 crore planned earlier, according to a regulatory filing to BSE. On Monday, capital markets regulator Securities and Exchange Board of India (Sebi) officially authorized Zomato’s IPO give.
Info Edge is a important shareholder of Zomato, with a stake of about 18.55% in the meals delivery platform.
“The committee of executive directors of the company, having been duly authorised in this regard, have considered and given their approval today (further to the resolution passed by the Board of Directors of the Company on April 27, 2021) for a reduction in the size of the Offer for Sale by the Company to the extent permitted under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, such that the revised Offer for Sale by the Company would comprise of such number of Equity Shares held by the Company in Zomato, as would aggregate up to Rs 3,750 million, the terms and conditions of which will be specified in the red herring prospectus and the prospectus filed in relation to the Offer, and in other Offer related documents and agreements,” Info Edge mentioned in a BSE filing on Sunday.
Zomato is searching to raise more than Rs 8,000 crore by way of the IPO, preliminary documents filed with Sebi in late April showed. The give comprises a fresh problem worth more than Rs 7,000 crore and OFS by current shareholder Info Edge, now slashed to Rs 375 crore. The organization intends to use at least 40% of the IPO proceeds to fund consumer acquisition by way of discounts, marketing, advertising, expanding delivery network and to develop on its technologies infrastructure. Besides, the organization mentioned it will continue to develop inorganically by way of relevant acquisitions.
Zomato’s income from operations grew by 98.44% year-on-year to Rs 2,604.73 crore in FY20. Losses improved by 136.14% year-on-year to Rs 2,385.6 crore in FY20. In the nine months to December 2020, the company’s operational revenues stood at Rs 1,301.34 crore although losses totalled Rs 682.19 crore.
Shares of Info Edge closed at Rs 5,466.90 apiece on the BSE on Monday, up 1.87%.