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Info Edge to sell Zomato shares worth Rs 750 crore in IPO – Moneycontrol

The company’s board has given its approval to participate in the said OFS of up to such number of shares of Zomato Limited as would aggregate up to Rs 750 crore, Info Edge said in a regulatory filing.

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Info Edge Limited on April 27 said that it would be selling stakes worth Rs 750 crore in its investee company Zomato Limited via Offer For Sale (OFS) in the latter’s upcoming initial public offering (IPO).

“This is to inform you that Zomato Limited is proposing an IPO of its Equity Shares, comprising a fresh issue of Equity Shares by Zomato Limited (‘Fresh Issue’) and an Offer For Sale by Info Edge (India) Limited (‘Offer For Sale’),” it said in a regulatory filing.

Info Edge currently holds around 19 percent stake in the food delivery aggregator company.

Also Read: Zomato to raise up to $1 billion from investors ahead of IPO: Report

“The Board of Directors of the Company today considered and have given their approval to the Company to participate in the said Offer for Sale of up to such number of shares of Zomato Limited as would aggregate up to Rs 7,500 million (Rs 750 crore), the terms and conditions of which will be specified in the Draft Red Herring Prospectus, the Red Herring Prospectus and the Prospectus, and in certain other offer documents and agreements,” Info Edge further stated in its BSE filing.

The announcement to sell off stakes worth Rs 750 crore assumes significance, as Zomato’s IPO is one of the most keenly awaited in recent capital market history.

Zomato would be among the first tech unicorns in India to be listed. Reports had in March said that the Deepinder Goyal-led company would raise $750 million to $1 billion through its planned IPO – without investor exits or share sales.

Ahead of a potential listing on exchanges, Zomato is on the verge of closing a $500 million investment that would value the Gurugram-based company at around $5.5 billion.

Existing investors Tiger Global, Kora Investments, Steadview, Fidelity, Bow Wave, Vy Capital along with new backer Dragoneer Group, will participate in the financing round, reports said in January.

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