Info Edge hits record high on additional investments in Zomato

The company has committed to make an additional investment of an amount of about Rs 185 crore Zomato Media, whihc owns and operates an online food guide portal www.zomato.com.

Info Edge (India) has rallied 7% to Rs 1,015, also its record high on NSE, after the company said it has committed to make an additional investment of an amount of about Rs 185 crore (Rs 1.85 billion) in the shares of Zomato Media Private Ltd.

Zomato Media owns and operates an online food guide portal www.zomato.com.

“Info Edge would be investing along with two other investors in this round of funding, which aggregates to Rs 370 crore (Rs 3.70 billion) and includes purchase of shares from certain existing shareholders”,  the company said in a statement.

Info Edge would be subscribing/purchasing equity shares and convertible preference shares of Zomato Media Private Limited.

Upon disbursement of this amount, the total amount invested by Info Edge in Zomato Media Private Limited will be about Rs 327 crore and the shareholding of Info Edge in Zomato Media Private Limited, post aforesaid aggregate fund raise of Rs 370 crore, will be maintained at 50.1% on a fully converted and diluted basis.

Zomato Media Private Limited is raising funds at a pre-money company valuation of about Rs 3,700 crore (approx. USD 600 million, assuming 1 USD = Rs.61.5).

At 0921 hours, the stock was trading 4% higher at Rs 984 on NSE. A combined 40,291 shares changed hands on the counter on NSE and BSE.