Quick commerce Zepto to confidentially file draft papers for IPO on Friday

Quick commerce unicorn Zepto plans to file draft IPO papers via the confidential route, aiming to become India's first pure-play qcom platform to list on the bourses

Quick commerce (qcom) unicorn Zepto is planning to file the draft papers for its upcoming initial public offering (IPO) on Friday (December 26), under the confidential route, a person aware of the matter told Business Standard.

 

The company, after filing its draft red herring prospectus (DRHP), will look to list on the bourses in the next calendar year.

 

Zepto’s listing will mark the D-street debut of the first pure-play qcom platform in the country.

 

The qcom company didn’t issue an official statement on the development.

 

As part of its IPO preparations, the Bengaluru-based company recently converted itself from a private entity to a public limited company.

 

 

According to documents filed with the Ministry of Corporate Affairs, the company has changed its name from Zepto Private Limited to Zepto Limited.

 

The size of the IPO is likely to be about $500 million, according to a Bloomberg report.

 

The company is reportedly working with Axis Bank Ltd, Motilal Oswal Investment Advisors Ltd, and the India-based units of Morgan Stanley, HSBC Holdings Plc, and Goldman Sachs Group Inc. for submission of its draft prospectus.

 

The offer is expected to include a fresh issue as well as secondary share sales by existing investors, the report added. The company will use a majority of its proceeds to expand its qcom operations as the competition in the sector is heating up.

 

Zepto has been aggressively raising funding in the past few months. Last year, it raised $665 million in June, $340 million in August, and a $350 million round in November. This year, in October, it announced the closure of approximately a $450 million funding round at a $7 billion valuation.