Zomato files DRHP for $1.1 Bn IPO; to raise $200 Mn in pre-IPO round

Foodtech major Zomato has filed its Draft Red Herring Prospectus or DRHP for its IPO with the market regulator Securities and Exchange Board of India on Wednesday.

According to the DRHP, the IPO size will be Rs 8,250 crore or $1.1 billion and the Gurugram-based company will raise fresh capital of $1 billion. The company may also consider a pre-IPO placement to raise Rs 1,500 crore or $200 million more.

Zomato has finalised Kotak Mahindra Bank, Morgan Stanley, Citi Bank, Credit Suisse and Bank of America as bankers and has received approval from BSE and NSE for the IPO.

Zomato said that it reported a revenue of Rs 13,01.35 crore in the first three quarters of FY21 and the total loss for the nine-month period was recorded at Rs 682.2 crore. The company’s net worth also jumped by 204% to Rs 6,330.70 crore in FY21 from Rs 2,083.08 crore in FY20, the DRHP added.

Zomato was valued at around $5.4 billion when it raised $250 million in a round led by Kora in February 2021. Info Edge, one of its earliest backers, holds approximately 18.55% stake in Zomato.

The development comes a day after Info Edge, in a stock exchange filing, announced that it will sell its stake worth Rs 750 crore or $100 million in the upcoming IPO of Zomato.

“This is to inform you that Zomato Limited is proposing an IPO of its equity shares, comprising a fresh issue of Equity Shares by Zomato Limited (“Fresh Issue”) and an Offer For Sale by Info Edge (India) Limited (Offer For Sale”),” said Info Edge in the stock exchange filing on Tuesday.

Earlier this month, Zomato had converted its holding entity from a private company to a public limited company. The company also passed a resolution last week to appoint its co-founder and CEO Deepinder Goyal as the Managing Director for the next five years. 

Entrackr had exclusively reported both developments and that Zomato will file its DRHP on Tuesday or Wednesday.