In a recent stock exchange filing, Info Edge, the biggest investor in Zomato, has revealed that it will only sell its share worth Rs 375 crore in the coming Zomato IPO. Earlier, it had a plan to sell its stake worth Rs 750 crore in Zomato Initial Public Offering(IPO).
Info Edge FOS Plan in Zomato IPO
Info Edge is the biggest shareholder in online food delivery firm Zomato. As per the latest filings by Zomato, Info Edge holds an 18.55% share of the food delivery giant. The investment firm was planning to sell its share of Rs 750 crore in the coming Zomato IPO. Info Edge took that decision on April 27, 2021.
But in the latest board of directors meeting, Info Edge changed the decision, and now slashed the offer for sale (OFS) in the Zomato IPO by half to Rs 375 crore.
In a formal statement released on July 4, Info Edge stated that the Committee of Executive Directors of the company, having been duly authorized in this regard, have considered and given their approval today for a reduction in the size of the Offer for Sale by the Company to the extent permitted under the SEBI, such that the revised Offer for Sale by the Company would comprise of such number of Equity Shares held by the Company in Zomato, as would aggregate up to Rs 3,750 million, the terms and conditions of which will be specified in the red herring prospectus and the prospectus filed with the Offer, and in other Offer related documents and agreements.
Info Edge share also saw a surge of 5% to Rs 5626 in Bombay Stock Exchange(BSE) after media portals reported that the Securities and Exchange Board of India(SEBI) approved Zomato’s application to launch an IPO. In the last three sessions of the Indian market, Info Edge’s share jumped by 14%.
Recent Zomato Activities
Zomato has recently invested $100 million in online grocery startup Grofers. As per Industry Experts analysis, this is Zomato’s one step towards buying Grofers in the future. Grofers has also achieved unicorn status after the current financing round.
About the above investment, Zomato knocked on the door of the Competition Commission of India(CCI) to buy a 9.3% stake in Grofers, the growing online grocery startup.
As per the details submitted by Zomato, it will take over a 9.3% stake in Hands On Trade Pvt Ltd, a subsidiary of Grofers. It will also get involved in the business of Target which includes Grofers India, HoT, and Grofers International.
In February, Zomato had raised $ 250 million in a financial round led by Tiger Global, Kora, and others. It helped Zomato to reach a valuation of $5.4 billion.