Zomato to raise $560 mn from anchor investors for IPO

Zomato, the first unicorn food delivery platform is all set to launch its initial public offering (IPO) on July 14. The food delivery app has reportedly received a strong response from global investors.

The food delivery app will garner almost half its issue size of around $560 million from institutional investors at the upper end of the price band of Rs 76 per share, according to a report in Moneycontrol. More than 100 end investors will be allotted shares as part of the anchor book for the IPO, the report stated.

Baillie Gifford, BlackRock, Capital Research, CPPIB, GIC, T Rowe Price are some of the top foreign investors in the company’s anchor book. Axis MF, HDFC MF, Birla MF, Nippon, HDFC Life, ICICI Pru Life are some of the domestic top investors, stated the news site.

Zomato declined to comment on this.

The company was scheduled to launch its IPO on July 19 but rescheduled it to July 14 on the back of strong interest from investors. The Securities and Exchange Board of India (SEBI) had earlier this month granted approval to the Zomato IPO.

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.

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Also read: Zomato advances its IPO on strong demand; likely to open on July 14