Food delivery platform Zomato’s upcoming initial public offering (IPO) has caught everyone’s attention -- the latest being state owned insurer Life Insurance Corporation (LIC). LIC is reportedly weighing a bid for the online delivery platform’s shares in the IPO that will be launched this week.
LIC usually invests in secondary markets unless the public issue is part of the government’s disinvestment programme. People aware of the matter told Livemint that the state insurer will bid for shares in Zomato’s IPO.
A person in the know told the daily that the insurers investment committee will hold a meeting soon to take a final decision. The insurer did not respond to queries by the daily.
ZOMATO IPO
Zomato rescheduled its IPO to July 14 from the earlier date of July 19 on the back of strong interest from investors. The Securities and Exchange Board of India (SEBI) had granted approval to the Zomato IPO earlier this month.
The price band for Zomato IPO is at Rs 72-76 per share. Zomato’s IPO comprises a fresh issue of shares worth Rs 375 crore and an offer for sale of Rs 9,000 crore by its current promoter Info Edge India Ltd. Total 65 lakh shares have been reserved for employees of the company. Zomato plans to raise 9,375 crore through the share sale.
The face value is Rs 1.00 per equity share.
Zomato will use the IPO proceeds for acquisitions and organic growth plans.
ZOMATO INVESTORS
Info Edge (18.55 per cent) is one of Zomato's leading investors, along with Uber BV (9.13 per cent), Alipay Singapore Holding Pte Ltd (8.33 per cent), Tiger Global (6 per cent), Sequoia Capital (5.98 per cent), co-founder Deepinder Goyal (5.51 per cent), and Temasek Holdings subsidiary (3.65 per cent).
On July 5, Info Edge said it would sell only 50 per cent, or Rs 375 crore, of the initial offer as offer-for-sale (OFS) in the IPO.
Also read: Zomato IPO to open on July 14, price band fixed below Rs 100 per share
Also read: Zomato advances its IPO on strong demand; likely to open on July 14