Thursday, June 1, 2023

zomato IPO: Info Edge slashes OFS size in Zomato IPO by half to Rs 375 crore


NEW DELHI: , one of the key shareholders of Zomato, has slashed the offer for sale in the latter’s IPO by half, which would eventually reduce the total size of the IPO. The Sanjeev Bikhchandani-owned company on Sunday said its board has revised the offer for sale by the company to Rs 375 crore worth of Zomato shares. Earlier the plan was to sell shares worth Rs 750 crore .

The reduction in size means Info Edge is confident of the company’s future and wants to hold more of the company that it had acquired cheaply. Many analysts and foreign investors are also sounding gung-ho over the issue. The much anticipated IPO of Zomato is expected to hit the market later in July. However, there is no clarity on date. The total issue size is likely be around Rs 8,000 crore, excluding pre-IPO allotment.

In the grey market or the unofficial market for unlisted shares, the stock is trading at Rs 80 apiece, around 15 per cent above of the projected IPO price of around Rs 70. In the latest round of funding, Zomato had sold its shares at Rs 55-60.

If traders’ speculations are right, and Zomato offers its shares at Rs 70, Info Edge will make 60 times its investment price on the shares sold. As per the DRHP, the Sanjeev Bikhchandani-led company had acquired about 18.55 per cent in the company at an average cost of Rs 1.16 per share.

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