Food delivery platform Zomato has received markets regulator Sebi’s go-ahead to raise Rs 8,250 crore through an initial share-sale.
The initial public offer (IPO) comprises fresh issue of equity shares worth Rs 7,500 crore and an offer-for-sale to the tune of Rs 750 crore by Info Edge (India) Ltd, according to draft red herring prospectus.
Zomato, which filed preliminary IPO papers with Sebi in April, obtained its observation on July 2, an update with the regulator showed on Monday.
Sebi’s observation is very necessary for any company to launch public issues like IPO, follow on public offer (FPO) and rights issue.
Going by the draft papers, proceeds from the fresh issue would be used towards funding organic and inorganic growth initiatives; and general corporate purposes.The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head-on to grab market share.