Home Business Info Edge India Shares Rise After Zomato Files Papers For IPO

Info Edge India Shares Rise After Zomato Files Papers For IPO

by NPT-Editorial

Shares of Info Edge India, which has a stake in food delivery service provider Zomato, rose as much as 3.14 percent to hit an intraday high of ₹ 5,100 on the BSE after Zomato filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹ 8,250 crores through share sale via initial public offering (IPO). (Track Info Edge share price here)

The company said it intends to use the proceeds to fund growth initiatives and general corporate purposes. Top shareholder Info Edge will sell shares worth ₹ 750 crore in the IPO. The company, along with domestic rival Swiggy, backed by Accel, dominates the food delivery market, which research firm RedSeer estimates is worth $4.2 billion.

Launched in 2008, Zomato is one of India’s most prominent startups. It is present in 24 countries and employs more than 5,000 people, according to its website. In February, the company had raised $250 million from five investors including hedge fund Tiger Global Management for a post-money valuation of $5.4 billion. According to draft papers submitted to India’s market regulator on Wednesday, Zomato’s offering will comprise a fresh issue of shares worth up to ₹ 7,500 crore.

Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Securities India, BofA Securities India, and Citigroup Global Markets India are the lead book-running managers for Zomato’s IPO. The company has not yet fixed the price band and lot sizes in which investors interested in the sock can bid for its shares in the IPO.

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