Zomato, the online food delivery platform, is surely in a hurry as the initial public offering (IPO) will hit Dalal Street on July 14 next week, 2 days before the scheduled date. The company is looking to raise over Rs 9,000 crore from the IPO, at the price band of Rs 72-76 per share.

The food delivery giant,  the first of many Indian tech startups to list on the stock exchanges, will have 75% of the portion reserved for qualified institutional buyers (QIB) while 15% is reserved for non-institutional investors (NII). Only 10% of the public issue is open for retail investors to bid, translating to merely Rs 937 crore, according to The Financial Express.

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Investor’s bid

Zomato, which is without a promoter and is backed by Ant Financials, Info Edge, Sequoia, and Uber as some of its investors, has kept the investors’ bid for the issue in the price band of Rs 72-76 per equity share of face value Re 1. Bids can be made for a minimum of 195 equity shares and in multiples thereafter.

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For the Zomato employees, 65 lakh equity shares are reserved. The company received SEBI’s nod on July 5. They had applied for the same in April this year. The offer will consist of a fresh issue of equity shares and an offer for sale (OFS) by Naukri.com’s parent company Info Edge.

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According to the RHP(Red herring prospectus) filed by Zomato, the company will use nearly Rs 7000 crore for funding organic and inorganic growth initiatives while the remaining will be used for general corporate purposes.  In the fiscal year ending March 2020, Zomato’s total income stood at Rs 2,742 crore. Zomato took a hit during the pandemic and its income dropped to nearly half at Rs 1,367 crore. Zomato continues to remain a loss-making entity as of now but showing signs of recovery.