Zomato’s proposed initial public offering (IPO) comprises a fresh fund raise to the tune of Rs 7,500 crore — the third-largest for the domestic IPO market. The largest-ever fresh fund raise through an IPO was by Reliance Power at Rs 10,123 crore in 2008, followed by realty major DLF, which issued fresh shares worth of Rs 9,188 crore a year earlier.
State-owned firms Coal India and General Insurance Corporation of India (GIC Re) hold the record for biggest and second-biggest IPOs. Both issues were dominated by share sales by the government. Zomato’s IPO comprises a Rs 750-crore worth secondary share sale by InfoEdge India.
In terms of overall size, the food delivery company’s IPO at Rs 8,250 crore would rank ninth biggest and the biggest since SBI Cards & Payment Services more than a year ago.
Zomato, however, said it might raise Rs 1,500 crore by way of a pre-IPO placement. This could reduce the potential IPO size to that extent, and the company will slip down the IPO league tables in terms of the biggest fundraise.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.