Food delivery giant Zomato announced in a press conference the price band for its much-awaited public issue at Rs 72-76 per equity share.
The Rs 9,375-crore offer will open for subscription on July 14 and close on July 16. Anchor book, if any, will open for a day on July 13, a day before the issue opening.
It is the largest IPO after SBI Card (Rs 10,355 crore) that was launched in March 2020.
The public offer comprises a fresh issuance of Rs 9,000 crore, and an offer for sale of Rs 375 crore by existing selling shareholder Info Edge. The public issue includes a reservation of up to 65 lakh equity shares for its employees.
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Earlier, at the time of filing draft red herring prospectus in April this year, the total offer size was Rs 8,250 crore.
As per the RHP, the fresh issue size has been increased to Rs 9,000 crore from the earlier Rs 7,500 crore, while Info Edge intimated exchanges last week that the offer-for-sale size has been reduced to Rs 375 crore from Rs 750 crore.
Investors can apply for a minimum of 195 equity shares and in multiples of 195 shares thereafter.
Zomato has reserved up to 75 percent of the total offer for qualified institutional buyers, up to 10 percent for retail investors, and the rest 15 percent for non-institutional buyers.
The company in February this year had already mobilised $250 million in its pre-IPO placement from marquee investors such as Kora Management, Tiger Global, Fidelity, Dragoneer and Bow Wave, at a valuation of $5.4 billion.
The food delivery company's consolidated loss at Rs 2,385.6 crore in financial year ended March 2020 widened from loss of Rs 1,010.2 crore in previous year. But revenue nearly doubled to Rs 2,604.7 crore from Rs 1,312.58 crore in the same period.
Consolidated loss for the nine-month period ended December 31, 2020 stood at Rs 682.2 crore on revenue of Rs 1,301.35 crore.
Equity shares are expected to be listed on the bourses in the week starting July 26.
Kotak Mahindra Capital Company, Morgan Stanley India Company, and Credit Suisse Securities (India) are the global co-ordinators and book running lead managers to the issue. BofA Securities India, and Citigroup Global Markets India are the book running lead managers to the offer.?
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