Zomato Ltd. has successfully raised Rs 8,500 crore through qualified institutional placement, issuing 33.64 crore equity shares at an issue price of Rs 252.62 per share. The price includes a premium of Rs 251.62 per share, with a 5% discount on the floor price of Rs 265.91. The QIP, which opened on Nov. 25 and closed on Nov. 28, was oversubscribed, with significant participation from institutional investors.
The additional capital raised will increase Zomato's paid-up equity share capital to Rs 917 crore, consisting of the same number of equity shares. The funds will be utilised to strengthen Zomato's financial position and support its future growth initiatives.
Notably, major institutional investors like ICICI Prudential India Opportunities Fund and HDFC Mutual Fund have been allotted a substantial portion of the QIP. ICICI Prudential India Opportunities Fund, for example, received over 22 million shares, accounting for 6.69% of the total issue size. Other large investors include HDFC Trustee Co. and Motilal Oswal Mutual Fund.
Zomato Share Price
Shares of Zomato fell as much as 2.33% before paring loss to trade 1.88% lower at Rs 280 apiece, as of 12:14 p.m. This compares to a 0.86% advance in the NSE Nifty 50.
The stock has risen 140.78% in the last 12 months. Total traded volume so far in the day stood at 1 times its 30-day average. The relative strength index was at 59.
Out of 26 analysts tracking the company, 24 maintain a 'buy' rating, and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 7.5%.
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