Info Edge revises its offer for sale in Zomato IPO by half to Rs 375 Cr
Sanjeev Bikhchandani-led Info Edge is the largest shareholder in foodtech unicorn Zomato
Info Edge, in a stock exchange filing, has notified that it has slashed the offer for sale (OFS) in the Zomato IPO by half to Rs 375 crore from the initial plan to sell shares worth Rs 750 crore.
Sanjeev Bikhchandani-led Info Edge is the largest shareholder in foodtech unicorn Zomato with an 18.55 percent stake.
A statement released by Info Edge on July 4 stated -
"The Committee of Executive Directors of the company, having been duly authorised in this regard, have considered and given their approval today for a reduction in the size of the Offer for Sale by the Company to the extent permitted under the SEBI, such that the revised Offer for Sale by the Company would comprise of such number of Equity Shares held by the Company in Zomato, as would aggregate upto Rs 3,750 million, the terms and conditions of which will be specified in the red herring prospectus and the prospectus filed in relation to the Offer, and in other Offer related documents and agreements."
Last week, Zomato approached the Competition Commission of India (CCI) to acquire 9.3 percent stake in e-grocery startup Grofers. As per the filing, Zomato will acquire 9.3 percent stake in Grofers' subsidiary, Hands on Trade (HoT) Pvt Ltd, along with certain rights in the collective company — Target (which includes Grofers India, HoT, and Grofers International).
In February, Zomato had raised $ 250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora, and others, valuing the online food ordering platform at $ 5.4 billion.
Zomato's FY20 revenue had jumped over two-fold to $ 394 million (around Rs 2,960 crore) from the previous fiscal, while its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss was around Rs 2,200 crore.
Edited by Anju Narayanan