Zomato the leading food delivery company is going to file Draft Redding Herring Prospectus (DRHP) to the Indian market regulator SEBI on 23rd April 2021. This is one of the biggest big bang startup IPO we are expecting soon.
Zomato is backed by well known investors like Info Edge, Sequoia Capital, Temasek and Tiger Global. As per resources Zomato completed its process of internal review for the IPO and is now ready to file Draft Redding Herring Prospectus (DRHP) to SEBI. They will review the DRHP for 2 to 3 weeks and will give them grant according to market conditions.
But interestingly Zomato founder Deepinder Goyal denied this news.
But now as per the latest news Zomato has confirmed the process of filing for an IPO and is going to raise Rs. 8,250 Crores. The issue comprises of fresh issue as well as offer for sale (OFS). Zomato is willing to raise Rs. 7500 Crores through the fresh and issue and in offer for sale Infoedge (Initital Investors of Zomato) are going to sale shares worth Rs. 750 Crores.
What are preparations going on for Zomato IPO?
Zomato made its first move to bring Zomato’s IPO by making it public limited company from private limite company.
This move took place because as per the rules of some relevant stock exchanges if they want to get listed they need to be public limited company and not a private limite company.
Filing Draft Redding Herring Prospectus (DRHP) to Securities Board of India is the first process to get going an IPO. DRHP contains all the details about companies from incorporation date to the present date.
As per moneycontrol Zomato raised money from Investors like Kora Management, Tiger Global, Fidelity and Bow Wave recently. After this the initial investor of Zomato, Info Edge stated that they have 18.4% stake in it now. After funding the valuation of Zomato increased up to $5.4 billion.
Will Zomato IPO come in such tough times?
Deepinder Goyal the founder of Zomato said,”They are doing pretty well than expected in such a though times as they are growing in every market sector and also post vaccine I firmly believe that growth of online food deliveries will increase.”
Zomato reported revenue of Rs 2,486 crore and also losses increased upto Rs 2,451 crore due to Covid pandemic. So we can expect Zomato IPO soon in 2021 according to the market conditions.
Who are the other Startups ready for IPO?
Apart from Zomato, Policybazaar, Nykaa, and Delhivery are also going to file DRHP for an IPO. You can follow this article to read more about upcoming IPOs. This is very good sign for startup ecosystem as this indicates how startups are booming in India.
Frequently Asked Questions on Zomato IPO –
When is Zomato going to file DRHP?
Zomato the leading food delivery company is going to file Draft Redding Herring Prospectus (DRHP) to the Indian market regulator SEBI on 23rd April 2021.
When will Zomato IPO come?
Zomato started there preparations for the IPO when they made Zomato a public limited company from private limited company. Zomato will be filing DRHP on 23rd April 2021 but Zomato IPO will come according to the market conditions soon.
Which are other Indian startups going for an IPO?
Policybazaar, Nykaa, Delhivery, Ixigo, Flipkart and Freshworks are other Indian Indian startups intrested for an IPO
How much is Zomato going to raise through an IPO?
Zomato is willing to raise Rs. 7500 Crores through the fresh and issue and in offer for sale Infoedge (Initital Investors of Zomato) are going to sale shares worth Rs. 750 Crores.
Should I invest in Zomato IPO?
No doubt Zomato is the unicorn startup in India with billion dollar valuations it looks attractive but in DRHP they have stated, “losses may continue for years due to Covid Pandemic.” But if you are long term investor then you can invest in Zomato as they hav stronge brand presence its increasing day by day which can convert Zomato’s losses into profits.