Zomato, the well-known food delivery service, has given the green light for a Qualified Institutional Placement (QIP) to raise funds. The company has set the initial floor price for its shares at Rs 265.91 each. This initiative aims to strengthen Zomato’s financial position by offering these shares to institutional investors.
The company is looking to secure Rs 8,500 crore through this financial move.
Zomato’s CEO, Deepinder Goyal, explained that the funds will be used to strengthen the company’s financial position and support its ongoing growth efforts.
In a filing made on Monday, Zomato confirmed that its Board’s fundraising committee has given the green light to begin its Qualified Institutional Placement (QIP) offering.
The platform also clarified that November 25, 2024, has been designated as the “relevant date” for the offering, as per SEBI’s regulations concerning capital issuance and disclosure. This step marks a crucial phase in Zomato’s efforts to raise Rs 8,500 crore for bolstering its financial foundation.
Price Per Share Set at Rs 265.91
Zomato has set the floor price for its share offering at Rs 265.91 per equity share, in line with the pricing rules outlined under Regulation 176(1) of the SEBI ICDR Regulations. The company has also mentioned that, following a special resolution passed via postal ballot on November 22, 2024, it may offer a discount of up to 5% on the floor price for the issue.
The company will finalize the issue price in collaboration with the appointed book-running lead manager, according to the filing.
Zomato’s stock was trading at Rs 279.10 on the Bombay Stock Exchange (BSE), marking a 2.01% increase during the afternoon session.
