Zomato Ltd. is looking to raise Rs 9,375 crore through its initial public offering next week as the Jack Ma's Ant Group-backed online food delivery platform looks to expand operations at a time demand rises in its home market amid the Covid-19 pandemic.
The IPO—the first by a food-tech company from India—will open on July 14, and will comprise a fresh issue of Rs 9,000 crore and sale of shares worth Rs 375 crore by existing investors. The price band is fixed at Rs 72-76 apiece.
“We felt that this is the good time for the business to go public. We asked this question why not? We didn't find a better answer,” Gaurav Gupta, co-founder of Zomato, said. The funds will be used for inorganic and organics growth, including getting more customers to try food delivery and build its technology and delivery infrastructure, he told BloombergQuint in an interview.
“As we go along for existing businesses and new businesses, if we find a suitable inorganic opportunity to grow the business, we will take that call at that point of time.”
Zomato is taking another shot at grocery with its investment in Grofers, and through its own pilot marketplace.
After the IPO, Zomato said it would have $2 billion in the bank.
Watch the full interview here...
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