Info Edge gains 5% as Zomato gets Sebi approval for IPO

Info Edge to sell shares worth Rs 375 crore in Zomato IPO

Shares of Info Edge (India) rose 5 per cent to Rs 5,626 on the BSE in intra-day trade on Monday after media reports said Securities and Exchange Board of India (SEBI) has approved the initial public offering (IPO) application of food delivery company Zomato. Info Edge held an 18.55 per cent stake in Zomato as of April 27, 201, according to Draft Red Herring Prospectus. The stock of Info Edge (India) has rallied 14 per cent in the past three trading days.

Meanwhile, Info Edge has reconsidered its offer to sell shares worth Rs 750 crore in the upcoming IPO of Zomato. Info Edge, in a regulatory filing, said it will now be selling only 50 per cent, or Rs 375 crore, of the initial offer as offer-for-sale (OFS) in Zomato’s IPO.

On April 27, 2021, Info Edge had received board approval for its participation in the OFS sale of up to such a number of equity shares of Zomato, as would aggregate up to Rs 750 crore, in the IPO of Zomato.

"The Committee of Executive Directors of the company, having been duly authorized in this regard, have considered and given their approval on July 4, 2021 (further to the resolution passed by the Board of Directors of the Company on April 27, 2021) for a reduction in the size of the Offer for Sale by the Company to the extent permitted under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, 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 375 crore, the terms and conditions of which will be specified in the red herring prospectus and the prospectus filed in relation to the Offer, and in other Offer related documents and agreements,” Info Edge said in an exchange filing.

Info Edge (India) is among the leading internet companies in India. The company runs leading internet businesses viz. Naukri.com, Jeevansathi.com, 99acres.com and Shiksha.com. The company also owns Quadrangle and Naukri Gulf. It has made significant strategic investments such as zomato.com, policybazaar.com and happily unmarried.com etc.

At 09:50 am, the stock of Indo Edge (India) was up 3 per cent at Rs 5,539 on the BSE, as compared to a 0.64 per cent rise in the S&P BSE Sensex. A combined around 750,000 shares had changed hands on the counter on the NSE and BSE so far.