Info Edge board of directors have approved sale of the company's stake worth Rs 750 crore in Zomato during the latter's upcoming initial public offering (IPO). The parent company will offload the shares via offer for sale.
"Zomato Limited is proposing an IPO of its Equity Shares, comprising a fresh issue of Equity Shares by Zomato Limited and an Offer For Sale by Info Edge (India) Limited," Info Edge said in a regulatory filing on Tuesday.
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"The Board of Directors of the Company today considered and have given their approval to the Company to participate in the said Offer for Sale of up to such number of shares of Zomato Limited as would aggregate up to Rs 750 crore, the terms and conditions of which will be specified in the Draft Red Herring Prospectus, the Red Herring Prospectus and the Prospectus, and in certain other offer documents and agreements," it further added.
Earlier this month, ahead of its IPO, Zomato underwent a corporate revamp to convert itself into a public limited company from a private company. The name of the firm has been changed to Zomato Limited from Zomato Private Limited, the regulatory filings showed. The company passed a special resolution earlier this month, amending its MOA (Memorandum of Association) and renaming itself as Zomato Limited from April 09, 2021.
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Zomato, which started operations as a restaurant review and discovery platform, is planning to raise $650 million to $1 billion through the primary stake sale.
Regulatory filings sourced from the business intelligence platform Tofler showed that Zomato is preparing to file a draft red herring prospectus (DRHP) with the SEBI and relevant stock exchanges within this month.
Zomato plans to launch an IPO in the first half of this year, as per an internal email sent by founder and CEO Deepinder Goyal to the company's employees last year. The food-tech giant has been on a fundraising spree to fund the fresh issue, raising around $910 million from a bevy of investors throughout 2020 and early 2021. Zomato's valuation presently stands at $5.4 billion.
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