Zomato IPO | Info Edge cuts offer for sale size to Rs 375 crore

Info Edge, which owns online classified recruiter Naukri.com, has reduced its offer for sale size by half to Rs 375 crore in Zomato's initial public offering. Earlier offer for sale size was Rs 750 crore.

"The revised offer for sale by the company would comprise of such number of equity shares held by the company in Zomato, as would aggregate upto Rs 375 crore, the terms and conditions of which will be specified in the red herring prospectus and the prospectus filed in relation to the offer, and in other Offer related documents and agreements," Info Edge said in its BSE filing on July 4.

The Securities and Exchange Board of India (SEBI) has formally approved food delivery giant Zomato's application for an initial public offering (IPO).

Moneycontrol was the first to report about SEBI clearing the application on July 2, and that the official approval may come by July 5.

Zomato filed the draft red herring prospectus (DRHP) with Sebi in April this year, for its Rs 8,250-crore IPO comprising a fresh issue of Rs 7,500 crore and an offer for sale of Rs 750 crore by its existing investor Info Edge.

The company proposes to utilise the net proceeds from fresh issue of Rs 5,625 crore (including pre-IPO funds) for funding organic and inorganic growth initiatives; and general corporate purposes.

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The food delivery giant had 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.

After that, InfoEdge, one of Zomato's earliest investors, said its effective stake in Zomato is now 18.4 percent.

Info Edge shares settled at Rs 5,466.90 on the BSE, rising 1.87 percent on Monday.