Zomato set floor price of Rs 265.91 per share for QIP issue
Zomato aims to raise Rs 8,500 crore through the QIP issue. The fundraise comes at as its key rival Swiggy has now become a publicly listed company.
Foodtech major Zomato has set the floor price at Rs 265.91 per share for the Rs 8,500-crore qualified institutional placement (QIP) issue.
The floor price is a discount of 2.5% considering that Zomato shares closed at Rs 272.9 on Monday. This comes after the company received the shareholders' approval to raise Rs 8,500 crore through the QIP route.
In a filing with the stock exchanges, Zomato said the issue will be open on November 25 and the issue price will be determined by the company in consultation with the book-running lead manager appointed for the issue.
The share price of Zomato also rose by 3.29% on Monday as the company will now be included in the BSE Sensex, replacing JSW Steel starting from December 23. This is an important development as the stock is now considered a blue chip.
The fundraise comes at a time when competition has intensified with the entry of its key rival Swiggy as a publicly listed company and the rapid adoption of quick commerce business. The quick commerce business has emerged as a key differentiator for these foodtech companies, with the unicorn Zepto raising $1.35 billion this year alone.
The quick commerce sector has witnessed the entry of existing ecommerce companies like Amazon and Flipkart. According to reports, Amazon is also foraying into the quick commerce segment with an offering tentatively named Tez.
Zomato's fundraise is also expected to bring about a change in its capable, giving further ownership to domestic investors.
Edited by Kanishk Singh
