Zomato IPO launch this week: LIC may invest in ₹9,375 crore IPO | All you need to know
The Ant Group-backed food ordering platform Zomato is all set to raise Rs 9,375 crore through its initial share sale that will be launched this week. As per the latest report, the state-owned Life Insurance Corporation (LIC) is reportedly weighing a bid for the online delivery platform’s shares in the IPO. The subscription for Zomato IPO will be open from July 14 to 16.
LIC may bid for shares in the Zomato IPO, as per the Livemint report. LIC usually takes part in the investment of secondary markets or an IPO which is part of the Central government's disinvestment programme.
The investment committee of LIC is set to hold a key meeting to make the final decision on the plan to invest in the upcoming Zomato IPO, sources at the Mint reported.
Earlier this month, Zomato had received markets regulator Sebi's go-ahead for the initial public offer (IPO).
Zomato IPO comprises a fresh issue of equity shares worth Rs 9,000 crore and an offer-for-sale to the tune of Rs 375 crore by Info Edge (India) Ltd.
The price band for the issue has been fixed at Rs 72 to 76 per share.
The valuation of Zomato IPO is expected at around Rs 60,000 crore. This will be an indicative market capitalization.
Zomato's FY20 revenue had jumped over two-fold to USD 394 million (around Rs 2,960 crore) from the previous fiscal, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) loss was around Rs 2,200 crore.
All About Zomato IPO:
Zomato IPO issue period: 14 July 2021 – 16 July 2021.
Listing: The listing is likely by July 27
Price Band: The Public issue has a fixed price band of Rs 72 to Rs 76 per equity share
Zomato Lot Size: Minimum lot of 195 shares, and in multiples of 195 thereafter
Retail Investor and Employee Quota: For retail category, the quota is fixed at 10% of the net offer
For qualified institutional buyers (QIB) at 75% and non-institutional investors (NII) quota at 15%.
Grey Market Trends: The unlisted shares were set at a premium of Rs 13-17 in the grey market as per the Economic Times report.
ALSO READ: Zomato IPO: Subscription opens on July 14; Check price band, listing date & GMP
