Zepto Files Confidential Papers For Rs 11,000-Crore IPO With SEBI: Reports
Based in Bengaluru, Zepto competes with Swiggy and Zomato parent Eternal, both of which are already listed.
Quick commerce platform Zepto has filed draft papers for its $1.3-billion (around Rs 11,682 crore) initial public offering (IPO) with market regulator Securities and Exchange Board of India, according to a report by the Economic Times.
The Aadit Palicha-led company plans to raise around the sum capital through fresh equity, with the remaining portion of the issue comprising an offer for sale by early investors, as per media reports.
Zepto received shareholder approval for the IPO at an extraordinary general meeting held on December 23, making it one of the youngest startups to tap the public markets.
The company has appointed Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal as bankers for the issue. Zepto had shifted its domicile back to India from Singapore in January.
In October, Zepto raised $450 million in a mix of primary and secondary transactions, valuing the company at $7 billion.
Based in Bengaluru, Zepto competes with Swiggy and Zomato parent Eternal, both of which are already listed. The company is targeting a listing in the July–September quarter of 2026. Its confidential filing, a route earlier used by companies such as Swiggy, Meesho and Groww, will allow Zepto to revise the IPO size before the final launch.
Why Companies Opt For Confidential Route While Filing IPO
Many companies have lately opted for the confidential route to launch their IPOs. Some of the top names include Tata Capital, Swiggy, PhysicsWallah and Meesho, among others.
The reason behind opting for the confidential route to file draft papers with the Securities and Exchange Board of India is that companies aim for flexibility while preparing for an IPO in uncertain market conditions. By filing DRHPs confidentially, companies can assess investor interest without public pressure. This approach helps firms assess factors such as valuations and timelines, among others. This route also helps the companies protect sensitive operational and financial information from competitors.
As per the SEBI mandate, companies must launch their IPO within 12 months of receiving approval. However, firms that choose the confidential filing route are allowed a longer window of up to 18 months to launch their public issue.
