Food delivery platform Zomato files DRHP, aims to raise nearly $1.1 billion

Food delivery platform Zomato has filed its Draft Red Herring Prospectus (DRHP) with the market regulator today, kicking off one of India's most anticipated internet initial public offerings (IPOs) in a tumultuous year.

According to the DRHP filed by Zomato, the company will offer equity shares aggregating up to Rs 8,250 crore (nearly $1.1 Billion). Of this, Rs 7,500 crore will be fresh issue, while Rs 750 crore will be an offer for sale for its existing investor Info Edge.

The company's internal review of the IPO and other processes was completed on April 22, 2021. Sebi is likely to take about two weeks to review the DRHP and the final launch will depend on the market conditions, a source familiar with the development said.

The move comes a few weeks after Zomato converted itself from a private company to a public limited company by amending its Memorandum of Association and renaming itself Zomato Limited. It said the move to become a public limited company was required as it plans to consider filing the DRHP with Sebi and relevant stock exchanges to list its equity shares on one or more of the stock exchanges. It was originally incorporated as a private limited company on January 19th, 2010.

Zomato raised $250 million in its pre-IPO primary fundraise a couple of months ago at a valuation of $5.4 Billion from investors such as Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave. Post this, Info Edge, one of Zomato's earliest investors said its effective stake in Zomato is now 18.4 percent.