Mumbai: Online food delivery platform Zomato on Tuesday said that it has raised ₹4,196 crore from several prominent institutional investors as part of an anchor book allocation, a day ahead of its public offering.
The company informed exchanges that it has allocated 552.17 million equity shares, to anchor investors, at a price of ₹76 per share, the upper end of its price band of Rs72-76 per share. The Rs9,375 crore Zomato IPO opens for subscription to public market investors on 14 July and will close on 16 July.
Marquee global investors that participated in the anchor book include Government of Singapore, canadian pension funds Canada Pension Plan Investment Board and OMERS, BlackRock Global Funds, T Rowe Price, Fidelity, Aberdeen Global Indian Equity, Baillie Gifford, Steadview Capital, Goldman Sachs, Neuberger Berman, Abu Dhabi Investment Authority and Pinebridge Global Funds.
Among domestic investors, Axis MF, HDFC Trustee, SBI MF, Aditya Birla Sun Life, ICICI Prudential, Kotak MF, Nippon Life India, and SBI Life Insurance invested in the company via anchor book.
“There was as much as 40x demand for the anchor book,” said a person close to Zomato’s share sale, on the condition of anonymity.
The IPO comprises a fresh issue of equity shares worth ₹9,000 crore and an offer for sale (OFS) worth ₹375 crore by existing investor Info Edge (India), which is the parent company of Naukri.com.
The proceeds from the fresh issue will be used towards funding organic and inorganic growth initiatives and for general corporate purposes, according to the information in the red herring prospectus of Zomato.
On Friday, Mint reported that at ₹76 per share, the upper end of the price band of the IPO, the country’s largest food delivery platform will have a post-money valuation of ₹59,623 crore, giving it the 78th position among listed firms in India by market value. The share sale will open for subscription on 14 July.
Zomato’s valuation will be more than long-established and well-known names such as Hero MotoCorp Ltd, India’s biggest two-wheeler maker; drugmaker Aurobindo Pharma; Piramal Enterprises; Apollo Hospitals, Biocon Ltd and Bandhan Bank.
Post the IPO, Zomato will have about $2 billion, or roughly ₹15,000 crore in cash in the bank.
On average, 6.8 million customers ordered food every month on Zomato in FY21, an average monthly frequency of approximately three times, the company said in its prospectus. Zomato had 169,802 delivery partners and 148,384 restaurants on the platform in March 2021. It had 1.5 million Pro Members and 25,443 Pro Restaurant Partners as of 31 March.
Kotak Mahindra Bank, Morgan Stanley India and Credit Suisse Securities, BofA Securities and Citigroup Global Markets are book-running lead managers.
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